Technical Analysis – GBPUSD remains in 1.28-1.35 post-Brexit range with negative bias
|Pound/dollar has recently fallen below the psychologically important 1.30 level, but so far the post-Brexit low (1.2794) has held. Following the Brexit vote on June 23 and the huge move in the pound, pound/dollar has been spending its time in the broad 1.28-1.35 range. Right now it is closer to the bottom of that range.
Any upward reactions of the pound might be capped by the 50-day moving average at 1.3140. Note that the 200-day average is for now far removed from the picture (1.3970) as a result of the violent post-Brexit drop. On the downside, the pound’s decline will continue only once the 1.28 level is decisively broken.
Other indicators are showing bearish tendencies. For example the 14-day RSI is at 41, which indicates negative price action with room for further drops before the indicator becomes oversold. The MACD has also turned bearish during the past few days as the indicator is in negative territory and has also slipped below its red signal line. Therefore a test of the 1.28 low appears much more likely than a test of the 1.35 high right now.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.