GBP/USD on the edge of falling under 1.41
"The referendum will likely dominate the pound in the near term, drowning out other factors that could move the currency."
- Mizuho Securities (based on CNBC)
Pair's Outlook
The Sterling dropped more than 200 pips against the US Dollar on Monday, as the odds of a Brexit increased. The GBP/USD currency pair remains weak and could drop below the 1.41 major level, unless demand around that area, represented by the Bollinger band and the weekly S2, is sufficient to stop the fall. If this support fails, we might then see a slump towards the second target at 1.3945, namely the weekly S3 and the monthly S1. In case bulls manage to take over, the weekly S1 is the main short-term resistance, but the Cable might struggle to maintain trade above 1.42.
Traders' Sentiment
A rather high percentage of bulls (71%) is dominating the market, whereas the share of purchase orders edged up from 59 to 70%.
- Mizuho Securities (based on CNBC)
Pair's Outlook
The Sterling dropped more than 200 pips against the US Dollar on Monday, as the odds of a Brexit increased. The GBP/USD currency pair remains weak and could drop below the 1.41 major level, unless demand around that area, represented by the Bollinger band and the weekly S2, is sufficient to stop the fall. If this support fails, we might then see a slump towards the second target at 1.3945, namely the weekly S3 and the monthly S1. In case bulls manage to take over, the weekly S1 is the main short-term resistance, but the Cable might struggle to maintain trade above 1.42.
Traders' Sentiment
A rather high percentage of bulls (71%) is dominating the market, whereas the share of purchase orders edged up from 59 to 70%.