Review and dynamics
Due to the results of the last public poll in the UK, the Pound and the pair GBP/USD sharply went up. The gap of today’s opening session was over 110 points and positive dynamics in the pair continues.
Due to strong positive momentum, the price broke down resistance level of 1.4625 (Fibonacci 38.2% to the decline from the level of 1.5230 since December 2015) and reached resistance level of 1.4650 (ЕМА200 on the daily chart). In the result of growth of last Friday, a bin-bar has been formed on the weekly chart, which is reducing due to the rapid rise today.
On the daily, weekly and 4-hour chart the indicators OsMA and Stochastic suggest to open buy positions; on the monthly chart the indicators are also reversing in favour of long positions. On the monthly chart, a candlestick “hammer” is being formed, indicating reversal of the downtrend, if the price remains above the level of 1.4660 until the end of the month.
If positive dynamics in the pair continues, then, prior to the announcement of the results of the referendum, the price can either move in the range of 1.4540 (ЕМА144 on the daily chart) – 1.4650 (ЕМА200), or grow up to 1.4740 (ЕМА50 on the weekly chart).
Further dynamics in the pair (after the announcement of the referendum’s results) is easy to predict. If British people vote for staying in the EU, the GBP will grow, if they vote for the exit from the EU, the Pound will collapse
In any case, market will provide for various trading options. More definite technical analysis will be possible next week, when the markets calm down.
Support levels: 1.4600, 1.4540, 1.4500, 1.4420 and 1.4335.
Resistance levels: 1.4650, 1.4740, 1.4800 and 1.4860.
Sell Stop: 1.4470. Stop-Loss: 1.4550. Take-Profit: 1.4420, 1.4335, 1.4200, 1.4185, 1.4100, 1.4045, 1.3860, 1.3650 and 1.3600.
Buy Limit: 1.4600, 1.4540. Stop-Loss: 1.4490. Take-Profit: 1.4700, 1.4740, 1.4800, 1.4860, 1.5000, 1.5110 and 1.5230.
Strong resistance level of 1.4650
Gap the chart