Gold Is Testing $1,358

Despite the signal that Gold would move to the downside there was only a small drop and then several days of sideways consolidation. After that ended Gold once again started moving to the upside and it is currently testing the previous high at $1,358, continuing the overall bullish trend. That continuation will be confirmed, of course, once Gold breaks above the aforementioned previous high, which is very likely to happen. If it does break above that level it will probably continue moving to the upside towards $1,392, which is the last high that can be seen on the monthly time-frame, formed back in March 2014.

Silver Broke above 19.51

Back on Wednesday I wrote that Silver is very bullish and is testing the resistance at 18.30. In the following days Silver not only broke above that resistance level, but it also continued moving to the upside and reached target 19.51, which is the (MA)89 on the monthly time-frame. More importantly, it also broke above that resistance level with ease, something I was not really expecting to happen at the time.

I think that next week we can likely expect a retracement back to the resistance at 19.51, or perhaps even lower than that. However, since Silver is still very bullish I also think that if this breakout above the aforementioned resistance level is confirmed we can expect a further move to the upside.

Double Top for EUR/GBP?

I have to admit that this week technical analysis has been difficult. The market is still hugely affected by the UK referendum results and their consequences and rarely forms familiar technical analysis patterns. 

However, if you look at the screenshot of the EUR/GBP four-hour time-frame above you will notice that yesterday the pair formed a very familiar pattern, or in other words, it formed a double top after it tested the resistance at 0.8380 for a second time since Monday. Such a pattern is usually a signal for a impending move to the downside. Obviously, the pair is still testing the same resistance level, so how valid that signal is remains to be seen, but it is definitely something to keep in mind and wait for another signal for a drop to confirm the first one.