GBP/USD Forex Technical Analysis for June 14, 2016
Technical Analysis – The GBP/USD pair went back and forth during the course of the day on Monday, but ended up forming a shooting star more than anything else. With this being the case, it looks as if we could break down a bit from here, but at this point in time it’s going to be very difficult to trade the British pound against the US dollar as we have concerns about the vote in the United Kingdom as far as whether or not they are going to stay in the European Union. On the other hand, we also have concerns about whether or not the Federal Reserve can raise interest rates as quickly as we had previously seen. However, there so much in the way of uncertainty as far as all of this is concerned that I have no interest whatsoever in trading.
In Other view point – GBPUSD Analysis
Pivot: 1.4110 Most Likely Scenario: long positions above 1.4110 with targets @ 1.4285 & 1.4360 in extension. Alternative scenario: below 1.4110 look for further downside with 1.4050 & 1.4005 as targets. Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
In Other View Point – GBP continues to trade volatile dictated by UK referendum polls – BNZ
Kymberly Martin Senior Market Strategist at BNZ, suggests that the GBP continues to trade a volatile path dictated by UK referendum polls.
“A couple of polls released by ICM in the early hours of this morning showed ‘Leave’ ahead by 5 percentage points. Meanwhile betting sites still favour ‘Remain’ by a large margin. The GBP/USD traded a spiky 1.5% range overnight. It now trades at 1.4210.
Recall, in late February when ‘Brexit’ fears were heightened, the GBP/USD traded down to lows of 1.3840. It seems fairly certain the GBP has plenty further capacity to fall if a ‘Brexit’ vote prevails next week. Equally, a knee-jerk relief jump will occur on a ‘Bremain’ result.”