GBP/USD: good two way business, Brexit and bearish – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair closed the day slightly lower in the 1.4480 region, but saw some nice intraday spikes, with the Pound benefited from speculative interest paring dollar’s demand.

Key Quotes:

“The UK calendar will remain light until next Thursday, when the kingdom will release its preliminary Q1 GDP figures. In the meantime, Brexit polls and fears will keep on leading the way.”

“The long-term technical picture has turned neutral, with the downward risk probably increasing as the referendum looms, but chances of a break below the 1.4000 figure are still out of the picture.”

“Shorter term, a bearish tone prevails as in the 1 hour chart, the price has been unable to recover above a bearish 20 SMA, ever since breaking below it in the European morning, while the technical indicators turned south within bearish territory.”

“In the 4 hours chart, the 20 SMA turns lower around the daily high of 1.4548, offering a strong dynamic resistance in the case of further advances, whilst the technical indicators are recovering from near oversold readings, but remain well below their mid-lines.”
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Source:: FX Street