Title: In-Depth Technical Outlook: Silver, GBP/USD, EUR/USD, and Bitcoin
Original Author: Vassilis Mastrogiannopoulos for Forex Factory
Link to Original Article: https://www.forexfactory.com/news/1354574-pairs-in-focus-silver-gbpusd-eurusd-bitcoin
This article offers a comprehensive technical analysis of major traded pairs and commodities including Silver (XAG/USD), British Pound vs. U.S. Dollar (GBP/USD), Euro vs. U.S. Dollar (EUR/USD), and Bitcoin (BTC/USD). The analysis focuses on key trend levels, support and resistance zones, observed price action patterns, and RSI (Relative Strength Index) behavior to evaluate short-term and long-term potential movements. The original article was written by Vassilis Mastrogiannopoulos at Forex Factory.
Silver (XAG/USD) Analysis
After a significant bearish trend that drove silver from $32.50 to lows near $22, recent price action suggests a potential recovery with bullish indicators beginning to form.
Key Observations:
– The rebound from near $22 was sharp and currently faces horizontal resistance near $29.50.
– Price action shows lower time frame support being built above $27.50, signalling bullish consolidation after the rally.
– A well-defined ascending channel is forming, indicating the possibility of continuation higher.
– Daily RSI is gradually rising but not yet in overbought territory, suggesting more room for upside.
– Volume on green candles has been increasing, implying strengthening bullish momentum.
– Weekly candles show long wicks on the downside, often interpreted as rejection of lower prices and underlying buying strength.
What to Watch:
– Immediate resistance is clustered around the $29.50 level. A decisive close above this region could invite more buying pressure, possibly aiming for a retest of the $32.50 all-time high.
– On the downside, watch for support at $27.50 and $26.70. Losing these levels may trigger corrective moves back toward $25 or $24.
– In technical terms, a daily candle close above $29.80 could act as a breakout signal, validating the bullish bias.
– Attention should be given to macroeconomic catalysts such as U.S. inflation data or FOMC interest rate decisions, which may affect silver prices due to its dual role as both an industrial metal and inflation hedge.
GBP/USD Analysis
Sterling has seen a notable uplift over the past few sessions, benefiting from a weaker U.S. dollar and hawkish tones from the Bank of England. However, technical challenges now loom as the pair tests crucial resistance levels.
Current Market Structure:
– The pair recently surged above the 1.2700 zone and reached as high as 1.2830, a level previously seen in March.
– The momentum was initially supported by strong employment data from the UK and soft U.S. CPI figures, weakening the greenback.
– The 12-day EMA has been climbing steadily, showing an ongoing bullish bias. But the daily RSI has approached overbought levels, suggesting caution.
Resistance Zones:
– Immediate resistance sits at 1.2830–1.2850. A break above could open the door toward the psychological 1.3000 zone.
– Secondary resistance stands at 1.2910 and 1.2995, which are previous swing highs from December 2023.
Support Levels:
– First support at 1.2730, which aligns with the breakout level, followed by 1.2640 which was prior resistance now turned into support.
– A steeper decline could find stronger support at 1.2570, which is the convergence point of the 50-day moving average and previous structure low.
Technical Pattern to Watch:
– A bullish flag appears to be forming on the 4-hour chart. If the consolidation breaks to the upside, it would confirm bullish
Read more on EUR/USD trading.