Home GBP/USD suffers 3 Brexit Blows – hovers over low support
Forex News Today: Daily Trading News

GBP/USD suffers 3 Brexit Blows – hovers over low support

The British pound continues suffering and finally broke down  below the 1.41 handle. It now faces strong support, and not  at the round level.

Here are 3  Brexit-related updates and the levels to watch:

Update: the tables have totally turned with the tragic murder of MP Jo Cox.  GBP/USD soars 200 pips on rumors of a suspension of the referendum

  1. Ipsos Mori poll: An opinion poll towards the EU Referendum held on June 14th shows another lean towards the Leave Campaign: 49% against 43%. The previous poll by the same firm could not have been more different: 48% for Remain and 35% for Leave. Yet again, we have a confirmation of the trend.
  2. Survation poll: This one is tighter with 45% Leave and 42% Remain, but once again, it shows a break for Brexit: last time, in late May, it showed 44% for Bremain and 38% for the exits. Note that the number of undecideds is falling. This brings the FT’s Brexit tracker to show a 48% / 43% lead for Leave, a 10% change in less than two weeks.
  3. BOE: The Bank of England made its recent rate decision. Needless to say, the policy was not changed. However, they did provide very stark warnings about the impact of a Brexit: a sharp fall in the pound, recession, etc. This was their strongest wording yet. Can it impact voters towards a vote to remain in the EU? It can also backfire, with wide criticism on the Bank’s political interference. It certainly didn’t help the pound.

GBP/USD currently trades at 1.4096 after having reached 1.4077. The moves are somewhat limited with a lot of hedging going on. 1.4050 is the critical support level after working as a double bottom back in April.

1.40 is the next line of support thanks to its round nature and 1.3940 could be a stepping stone on the way down. Further support awaits at 1.3830, which is the cycle low.

Resistance awaits at 1.4150, followed by 1.4280.

More:

Here is how it looks on the chart:

GBPUSD falling June 16 2016

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.