So far so good for the precious metals

The new week starts with the reversal on many instruments which is largely contributed to the NFP from the last Friday.

It seems like the Gold is ending the correction movement as we broke the upper line of the flag formation. That bounce did not happen in a random place as we have here the combination of two Fibonacci lines (38,2 and 61,8) and a correction equality pattern. The sentiment here is definitely positive.

Silver is not far behind. Here we also broke the upper line of the trend correction pattern, but in this case, it is a wedge. We also broke the 38,2% Fibonacci and 16,8$/oz which now will be the closest support. Buy signal is already here.

The last one is the GBPJPY, where the situation is similar but so far we do not have a breakout of the upper line of the trend continuation pattern, so we do not have a trading signal yet. Apart from that, everything looks bullish especially the price bouncing from the 38,2% Fibonacci and support created by the tops from December, May, and July.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis