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


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.