Intraday Preference: BEARISH
Reference Area: 1.4257-1.4325
Sterling fell more than 1% against the US dollar in European trading session on Tuesday after the results of a recent poll showed increased support for the English voice out of the EU so that re-ignited the uncertainty about the possibility of “Brexit”.
ORB survey results published by the Daily Telegraph on Tuesday showed a 49% voting support for Britain to leave the EU.
Technical Analysis:
GBP/USD currently is testing intraday key support at 1.4147. If the support breaks, poundsterling might continue its bearish move to 1.4068-1.4002. The price currently is moving below 20 MA and 50 MA on hourly chart – 20 MA has crossed below 50 MA.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Note that stochastic and CCI are oversold. As alternative strategy, watch for bearish signal confirmation on a pull-back move to within the reference area at 1.4257-1.4325 with target at 1.4215-1.4247.
Be careful if the resistance at 1.4325 breaks, because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 1.4374-1.4435.
Written by Andrew Bulan, analyst for EconomicCalendar.com
