GBP/USD Forex Technical Analysis for June 24, 2016
Forex Technical Analysis – The GBP/USD pair initially rallied during the day on Thursday but found enough exhaustion above the 1.48 level to turn and form a nice-looking shooting star. This is a currency pair that will be very sensitive to whatever announcement we get coming out of the United Kingdom as far as the EU referendum is concerned today, so keep that in mind. A vote to stay within the European Union will be positive for the British pound, while a vote to leave will be negative. At this point in time, and looks as if it’s as simple as that.
In Other View Point – gbpusd – long-term bullish view
monthly chart — the Brexit spike moved from IV to V in the ending diagonal (see linked chart for pre-Brexit trade). Over the coming weeks, possibly months, I’ll be watching for another gyration down to complete V of the ending diagonal. This is cable’s long-term area of support (1.30x – 1.35x) which goes back many decades. I expect it to again find a floor there, and then head north. As usual with EDs, it’s normal for wave V to extend beyond the bottom trendline.