Silver Makes a New High

Silver just posted its highest reach since January this year going as high as 18.45. Gold's little brother accumulated momentum since it hit support at 15.80 and then price reacted strongly bullish to make the highest high today.

This move comes after the initial bullish reaction post-Brexit which boosted Silver price to 18.30. Although Silver is 3.5% up today, Gold is only some $10 up or 3/4 of a percent. The reason behind the Silver rally is that bulls are trying to get to the other side, or in other words - 18.90. Once this is a fact, we might expect price to fluctuate aggressively until market participants pick a winner.

Immediate support is seen at 18.00.

Chart: XAG/USD D1

GBP/USD Recovery

GBP/USD is trading somewhat to the upside. Even though the pair is up some 250 pips since yesterday's low of 1.3110 it still looks like nothing compared to the loss suffered on Friday when the major event of the year took place. The Brexit took away 12% or 18 cents of the Sterling.

However, it appears that the Sterling bulls still have something to offer as they managed to push price to a daily high 1.3371. Although we went to more than 30-year low, it does not look as bad as some analysts portray it.

In the beginning of March the price of GBP/USD was close to 1.38. On the day of the Brexit price went from the irrational and boosted 1.50 to a low of 1.32 and recovered to 1.40 on the same day. Going long now is worth considering as we are still in the aftereffect causing unrealistic depreciation of the GB pound.

Chart: GBP/USD D1

USD/JPY Below Support

USD/JPY is trading below support since the Brexit actually happened. The pair dipped below 103.00 on the Referendum day and made a low of 98.95. Two days later the Yen has depreciated slightly and is currently trading at 102.30 with a high of 102.41 for today and 102.47 for yesterday.

Main trend remains bearish as the Yen has been regarded as safe haven among currencies. Further depreciation could also be expected due to price well below the 200SMA and also below the support line on the long-term descending channel.


Strong support is seen at 100.80. First resistance might be expected at 103.10.

Chart: USD/JPY D1

Gold 16-month High

Gold made a fabulous run on Friday after Brexit results showed 52% of the UK in favor of leaving the European Union. Traders and investors fled to safety as Gold went up with $108 thus marking a 16-month high.

This is the second largest single day gain in the history of Gold. The first one is 25 Sept 2011 when Gold went from $1,535 to $1,663 (up $128). The third largest single day gain was during the Swiss Gold Referendum on 30 Nov 2014 when Gold rose from $1,142 to $1,221 (up $79).

The precious metal was heavily influenced by the vote and now that things are somehow calm and smooth, price might retreat to lower levels.

Chart: XAU/USD D1

GBP/USD Crashed as Brexit Happened

GBP/USD lost more than 12% on Friday or talking numbers, the pair went from 1.50 to 1.32 as results showed Britons chose to leave the EU. The Sterling fell off a cliff reaching the support line from the resistance line in a few hours.

However, technical analysis once again conquered over fundamentals as price was stopped a few pips above the support line. Support even managed to turn around price as after the 30-year low it climber up covering more than 50% of the downfall.

Main trend remains bearish on the short-term and if the situation deteriorates more then we could expect further depreciation of the Sterling.

Chart: GBP/USD D1

Brexit For Britain

History is made today. The UK is no longer part of the EU. This became clear with today's Referendum results, or to put it simply 52% voted Leave while 48% voted Remain.

The results had devastating impact on the British pound which came down crashing with some 12% going from 1.50 to 1.32. All GBP pairs suffered a loss and the Euro was not spared as it went down against the US dollar from 1.1428 to 1.0911.

Gold skyrocketed with $108 from $1,250 to $1,358.

Also, a webinar was hosted yesterday by ActivTrades' guest speaker Malte Kaub who spoke about the biggest event of the year, the Brexit.

In case you missed it you can watch the replays for free Here.

EUR/USD Indecisive

The EUR/USD is trading slightly higher today since opening going to 1.1278. These gains come after a losing day yesterday with a low of 1.1240. The pair has been trading in a uptrend channel for quite a while now and it looks like it will keep pushing higher.

Another thing that is playing a role in the appreciation of the Euro is that the pair is trading above the 200SMA signalling a bull run.

Have in mind that the UK Referendum scheduled for Thursday will certainly have an impact on the currency market.

Chart: EUR/USD D1