Review and dynamics
Oddly enough, but during the current period of strong pressure from the fundamental factors, technical indicators have proved to be useful.
In the review of 20.06.2016 we stated that in the result of the rise in the pair last Friday, a pin-bar was formed on the chart, indicating that the rise in the pair will continue, and if uptrend in the pair will go on, the price will remain 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).
At the opening of this week, the gap in the pair was over 100 points. The pair continued to rise and currently, positive dynamics prevails. The price has broken down strong resistance levels of 1.4625 (Fibonacci 38.2% to the decline from the level of 1.5230 since mid December 2015) and 1.4650 (ЕМА200 on the daily chart).
The price was missing just needed about 15 points in order to reach the level of 1.4860 (Fibonacci 50.0%).
Today’s rise suspended at the resistance level of 1.4740 (ЕМА50 on the weekly chart and the upper line of the ascending channel on the daily chart).
On the daily and weekly charts the indicators OsMA and Stochastic give signals for opening buy positions, while on 4-hour and monthly chart signals of the indicators are in favor of the long positions.
Some important European and American news is scheduled for the release today; however, it is likely that the pair GBP/USD will remain at the level of 1.4740 until the announcement of the results of the referendum.
It is expected that tomorrow the pair GBP/USD can soar up if the country votes for staying in the EU or sink down in case of the exit from the EU.
Targets for sell positions: 1.4650, 1.4540, 1.4420, 1.4335, 1.4100, 1.4045, 1.3900 and 1.3800.
Targets for buy positions: 1.4860, 1.5000, 1.5110, 1.5230, 1.5300, 1.5450 and 1.5500.
However, the range can be wide and the trend may continue long-term.
Remember that liquidity provider may not cover all market demand and some orders may be not executed.
More realistic technical analysis can be made when the market will slightly calm down.
Support levels: 1.4650, 1.4600, 1.4540, 1.4500, 1.4420, 1.4335, 1.4200, 1.4100, 1.4045 and 1.3860.
Resistance levels: 1.4740, 1.4800, 1.4860, 1.5000, 1.5110, 1.5230, 1.5400, 1.5500 and 1.5600.
For supports of the conservative trading we recommend to close all opened orders, especially in the pairs with the Pound and Euro.
For those who prefer aggressive trading and are not afraid to lose some part of the deposit, but wish to receive high profit, we can recommend to place pending orders.
Sell Stop: 1.4710. Stop-Loss: 1.4750. Take-Profit: 1.4650, 1.4600, 1.4540, 1.4500, 1.4420, 1.4335, 1.4200, 1.4100, 1.4045 and 1.3860.
Buy Stop: 1.4810. Stop-Loss: 1.4760. Take-Profit: 1.4860, 1.4900, 1.5000, 1.5110, 1.5230, 1.5300, 1.5400, 1.5500 and 1.5600.
If the orders are not executed by the time of the beginning of the American session, they shall be also cancelled.
Above the key support level of 1.4650
Pin-bar on the chart is carrying out