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Silver and EURGBP Outlook

The daily Silver chart is showing the market is moving lower in a downward sloping channel. The support and the low reached so far, has come in at 13.96. A loss of this area may look to further support at 13.60 with supply and demand dynamics impacting price action. Below this level the channel bottom comes into play at 13.20 and may provide support in the future. The 13.00 area can actively support price if resistance proves to be to strong and this level may see sellers taking some profits.

Resistance on the chart can be seen at the channel top and lower high at 14.36. A break above this point hands control to buyers, with initial resistance at the 50 DMA around 14.85, followed by the 15.00 level. Should price extend higher, the 15.52 level may provide a degree of resistance with the 100 DMA close by to add strength to the level. Continued buying can extend the rally to 16.00, with the 200 DMA above that level and previous resistance found at 16.20.

 

EURGBP 4 hour chart is showing the decline from 0.9100 starting at the end of last month. Price has now reached a key area with the retracement of the move higher slowing and consolidating, giving traders an area to pause and take stock of the situation. Support can be seen at 0.8872 where price has found some buyers. Below this area 0.8847 may come into play on a dip under 0.8850. Stronger support may be found at 0.8820 followed by the round number at 0.8800.

Resistance can develop at the falling two touch resistance trend line at 0.8900 with this round number also having an impact. A break higher would look to interact with the 50 period MA at 0.8920. The 0.8957 area has provided support and resistance in the past and the 200 period MA is located just above this level, with the 100 period MA not far above. A close above this area would suggest targets of 0.9000, 0.9030 and 0.9055 in extension. The high at 0.9100 will be a key area of interest to traders going forward.

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