Two trades to watch: GBP/USD, silver
Fiona Cincotta February 1, 2021 8:09 AM
GBP/USD rises ahead of manufacturing PMI data. Silver surges 8% but risks remain high.
GBP/USD rises ahead of manufacturing PMI data
Where next for GBP/USD?
GBP/USD trades above its 50 & 100 sma and is supported by an ascending trendline presenting a bullish bias on the 4 hour chart.
However, momentum has slowed as 1.3750 continues to act as an immediate hurdle. A move beyond this strong resistance level could bring 1.38 into target.
Immediate support can be seen at 1.37 round number and 50 sma, prior to 1.3650 the confluence of the 100 sma and the ascending trend line. This level is key for the sellers and a deep move southwards to 1.3650.
Silver spikes 8% higher but risks remain high
Silver technical analysis
The price of silver has been in consolidation mode since late September. Resistance was previously seen at $27.90. However, today’s jump has seen that resistance taken out.
Silver trades above its 50 & 100 sma on the daily chart and the 50 sma has formed a golden cross pattern above the 100 sma in a bullish signal.
Although it is worth noting that the RSI is in overbought territory above the key 70 level so caution should be applied before placing any aggressive bullish bets. Although these are unprecedented time.
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