Weekly Technical Outlook: Potential Breakdowns on GBP/JPY & Silver

thecekodok

 Are GBP/JPY and silver in for longer-term declines?


And can the S&P 500 index hit new highs this week?


Here are the levels I’m watching.


GBP/JPY: Daily

Who’s up for a major Guppy reversal?


Better keep your eyes glued to the 150.00 major psychological mark, as a break below this head and shoulders neckline could confirm that a long-term selloff is underway!


If that happens, GBP/JPY could tumble by roughly the same height as the reversal formation, which spans 600 pips.

The pair might also need to break below the 200 SMA dynamic support to show that sellers are taking over.


Just be careful since Stochastic is already dipping into the oversold region to reflect exhaustion among pound bears. Also, the 100 SMA is still above the 200 SMA to hint that there’s a chance bulls might charge again.


S&P 500: Daily

Ready for new highs on this one?


The S&P 500 index just busted through its mid-channel area of interest after bouncing off a long-term support zone. It could be setting its sights on the latest highs near $4,500 or the channel top from here!


Technical indicators confirm a continuation of the climb, with the 100 SMA above the 200 SMA to indicate that bullish momentum is in play.


Stochastic is also heading north, so the index could follow suit. However, the oscillator is also approaching overbought territory to suggest that bulls might need to take a break soon.


XAG/USD: Daily

Check out this shiny setup on silver’s daily time frame!



Price is sitting right at the bottom of its long-term range, still deciding whether to make a bounce or a break.

If the floor holds, silver could recover to the range resistance at $28.50 or at least until the dynamic inflection points at the moving averages.


The 100 SMA is above the 200 SMA for now, but the gap between the indicators has narrowed to signal weakening bullish pressure. Stochastic still seems to be turning higher, though, so there could be a chance for a bounce.


If you’re bearish on this one, stay on the lookout for a move below the latest lows to catch a potential drop that’s the same height as the rectangle pattern!