Pound may rose further on Brexit plan rejection

Slobodan Drvenica Windsor Brokers

The cross stands at the back foot on Monday following Friday’s sharp fall (the pair was down1% for the day) as pound maintains positive sentiment on wide expectations that UK PM’s Brexit plan will be rejected that may force the UK to stay in the union.

Friday’s long bearish daily candle weighs, along with daily close below 0.8938 Fibo support (38.2% of 0.8686/0.9113).

Bears pressure 55/100 SMA’s (at 0.8900 zone) loss of which would expose 200SMA (0.8858) and Fibo 61.8% (0.8830).

The pound may accelerate further on Brexit vote rejection, but unlikely to violate 0.8656 (13 Nov low, the floor of wider 0.8658/0.9113 range) which would provide good entry points after traders take profits from their shorts.

Res: 0.8932; 0.8952; 0.9000; 0.9061
Sup: 0.8900; 0.8884; 0.8853; 0.8828

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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