Review and dynamics
Decision of the British people to leave the EU has stirred the financial markets. Last Thursday, when it became possible that the number of supporters of the exit from the EU would not exceed the number of people who wish remain in the EU, GBP/USD soared above the level of 1.5000
However, when the results of the referendum were announced last Friday, world financial markets have collapsed. The pair GBP/USD lost 1230 on this day. Today, the pair opened with the gap down by 240 points. The pair has reached the lows of the past 30 years and continues to decline.
The pair GBP/USD will decline until the markets settle down after the decline caused by the UK referendum.
It is likely that the pair will reach new lows. It is impossible to predict a situation. On the weekly chart a new descending channel has been formed and the pair GBP/USD is at the lower line of this channel. However, the angle of slope of this channel may change and the range may expand.
Currently, the price is below the level of 1.3650 (lows of 2009 and 2001) and 1.3672 (Last Friday’s closing price). The rise in the pair is not expected.
More accurate technical analysis will be possible after some moderation of the financial markets.
Support levels: 1.3300, 1.3230 and 1.3200.
Resistance levels: 1.3650, 1.3672, 1.3700, 1.3800 and 1.3860.
Sell on the market. Stop-Loss: 1.3490. Take-Profit: 1.3300, 1.3230 and 1.3200.
Buy positions are not recommended.
In the descending channel