The silver chart is presenting a bearish pattern at present in the form of a continuation bear flag. The rally higher in Silver has matched that in Gold and both are still within their respective rising channels. For both charts, the outcome of what happens IF and WHEN we retest the channel bottom will be decisive. A loss of this line, currently at 14.64 may go on to test supports at 14.49 and 14.34. The latter level is the low for 2018 and a drop under that point could seek to challenge the 14.00 level.
Resistance on the chart can be seen at the meeting of the trend lines at 15.00. This level is significant in the fact that it is a round number and now forms a lower high. A break higher may have difficulty clearing the rising trend line and force price to remain inside that channel. Any breakout of the channel could encounter resistance at 15.29 followed by 15.68.
The Pound rallied yesterday after Michel Barnier reached out to the UK and offered a strong third party arrangement for a post Brexit partnership. The GBPAUD pair also move up from 1.7650 to 1.7850 during yesterday’s session. That high has been exceeded today with a move up to 1.7900 and the trend line resistance. Above this level 1.7980 has been resistive in the past. If traders can force price above 1.8000 some of the key levels on the way higher are 1.8244 and 1.8478.
Support can be found at last week’s high of 1.7699, followed by yesterday’s breakout area around 1.7600. The 1.7510 level was used extensively in recent times as a support level associated with 1.7500. Support levels under this point come in at 1.7415 followed by the 1.7271 low.