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.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.