Forex Technical Analysis, GBP/USD Daily Forecast June 7, 2016
Technical Analysis – The GBP/USD pair gapped lower at the open on Monday in reaction to the most recent polls coming out of the United Kingdom as far as they need in the European Union is concerned. That being the case, we fell rather precipitously but ended up turning right back around and look somewhat stabilized. With this, keep in mind that the headlines will continue to move this market more than anything else, and as a result it’s very difficult to trade the British pound at the moment, and as a result I am personally staying on the sidelines currently.
In Other View Point – GBPUSD could aim for 1.51 on a successful ascending triangle
GBPUSD is seeing strong resistance at 1.46 – 1.47 with multiple tests failing to break above this level, resulting in higher lows. A potential breakout higher above 1.46 – 1.47 could extend GBPUSD gains towards 1.51 marking a completion of the bullish divergence with the possible move to 1.54. Hidden bullish divergence shows the key support level of 1.4398 – 1.4340. Break below this could see GBPUSD extend declines to 1.42 with the possibility of a dip to 1.40 – 1.39 Buying on a retest of 1.46 – 1.47 to establish support is recommended. Key levels: Upside: 1.53, 1.53 – 1.54 Line in the sand: 1.4398 – 1.4340 Downside: 1.42, 1.40 – 1.39