Technical analysis - GBPUSD and silver in focus


Since the sharp fall after the outcome of the EU referendum the pound has been trading in a range with highs of 1.3533 and a swing low of 1.2796.


However recently we saw a tighter range develop in which it broke to the down side breaching the 1.3000 level. Should this momentum continue short-term support could reside at the previous lows of 1.2796, should price get as low as this would see the pound making yet another 30-year low. On the flip side should the pound strengthen at current levels potential resistance would reside at the 1.3000 and any further extension may face resistance at 1.3200.


Like GBPUSD silver too is currently in a trading range. This range is between 20.75 and 19.24. Like any market that is in a horizontal consolidation phase shows that the market is unsure of direction. However at present price is currently hovering around the uptrend line from early June this could be testing the potential integrity of the upward trend.


On the other hand range support lies at 19.24 so should this level hold we may still hold the integrity of the broader trend from the lows of Jan this year. Now if price finds support at the rising trend resistance could be found at the top end of the range. Market participants will certainly be keeping an eye on this range in anticipation of a break.


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