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Dollar Bulls Need to Step in Now to Ensure Rally Continues

|Includes: FXB, SPDR Gold Trust ETF (GLD), SLV, UUP
The rally in the US dollar has stalled a bit of late, thus raising the age old question of whether this is simply a period of consolidation before the next phase in the rally -- or a reversal back down. 

With that in mind, I wanted to take a look at two charts. Below is the first one of GBPUSD daily chart. The pair is testing the upper trendline after bouncing off the 38.2% Fibonacci level of the big decline in the US dollar through this past summer. Dollar permabears may suggest that as GBPUSD never really penetrated past the 38.2% Fibonacci level. 




Meanwhile, silver has bounced off the 61.8% level of its most recent rally on the daily chart, and has formed an inside bar as well. 





Personally, I think the pressure is on the dollar bulls to continue the rally. As such, I've tightened my stops on my dollar bull positions, and bought a bit more gold and silver on the pullback thus far. 

What do you think? Feel free to share your comments below.
 

Disclosure: I am long GLD, SLV.