GBP/USD Forex Technical Analysis for June 17, 2016
Technical Analysis – The GBP/USD pair fell below the 1.41 level during the day on Thursday, but found enough support at the 1.40 region to turn things back around and form a bit of a hammer after a significant bounce. The bounce might have been due to speculation on a delay of the EU referendum, as a British MP was shot and killed during the day by someone with a “Britain first” slogan. Ultimately though, it’s difficult to believe that is actually going to happen, so this may be a knee-jerk reaction that can be faded.
In other view point – GBP/USD: Fresh offers coming in near 1.4265, looks vulnerable
The pound defends the bids against its American counterpart in the European morning, with the bears pressing GBP/USD down towards 5-DMA placed at 1.4226.
GBP/USD struggles in early Europe
Currently, GBP/USD now trades +0.21% higher at 1.4234, hovering close to fresh session lows posted at 1.4231 last minutes. The cable fails every attempt to surpass strong offers lined up near 1.4265 region and drifts lower in a bid to test 5-DMA support.
However, the downside appears cushioned by expectations of an upbeat start to the European markets, as Euro Stoxx 50 futures bounce +1.1% in early European trading. Markets now await fresh impetus from the upcoming US data, as markets move beyond the Brexit campaign suspension news and BOE’s unchanged monetary policy decision.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4295/1.4300 (daily high/ round number), above which 1.4348 (100-DMA) would be tested. On the flip side, support is seen at 1.4200 (round figure) below that at 1.4181/76 (1h 50 & 100-SMA).
In Other view point – GBP/USD – Erratic trading continues…
Cable is all over the place and there is little clue on the charts about what could happen, given we are just one week away from referendum. Cable should continue to see erratic moves today. Resistance – 1.4302, 1.4330, 1.4348, 1.4413, 1.4432 Support – 1.4192, 1.4131, 1.4056, 1.4005, 1.39 Traders could simply go with the flow and this jotting down key technical levels is all that is needed to trade the highly volatile and volume-thinned Cable.