Forex Technical Analysis, GBP/USD Daily Forecast June 6, 2016


Forex Technical Analysis, GBP/USD Daily Forecast June 6, 2016

Technical Analysis – The GBP/USD pair broke higher during the course of the session on Friday, breaking above the 1.45 handle. What’s most important to me is the fact that we formed a bit of a hammer during the course of the week, so I think that if we can break above the top of the range during the session on Friday, we should continue to go higher, perhaps reaching towards the 1.45 region. Pullbacks should show plenty of support all the way down to the 1.4350 handle. One thing you can count on though is going to be volatility.

In Other View Point –Cable trades weak on renewed Brexit fears,good to sell on rallie

Cable trades below major support of 1.4400 on renewed Brexit fears. It is currently trading at 1.4386. According to Brexit poll conducted by YouGov recently shows a lead for Brexit. The poll was based on Wed-Friday survey of 3500 Britons commissioned by YouGov found 45 pct said that they would vote to leave EU compared to 41 pct ‘remain’. The pair has currently broken the low made on 1.43850 (Jun 1st low) and declined till 1.43516. Short term trend is weak as long as resistance 1.4450 holds. Any break below 1.4450 will take the pair till 1.4520/1.4580/1.4600. Overall bearish invalidation only above1.4750 (200 day MA) On the lower side any break below 1.4380 will drag the pair till 1.4330/1.42896/1.4240. It is good to sell on rallies around 1.4450-460 with SL around 1.4600 for the TP of 1.4240/1.4000

Technical Analysis