The GBP/USD has increased sharply today and have reached fresh new highs, now is challenging important resistance levels, remain to see what will happen on this pair because we could have high volatility these days. The Brexit referendum could bring high activity on this pair, maybe will be best if you’ll stay away from this pair on Thursday, during the EU Membership Vote. The Cable could register a monstrous decline if the UK will leave the European Union, but personally I don’t think that the United Kingdom will leave the EU, so the pound could appreciate further versus all its counterparts.
The GBP/USD has edged higher aggressively in the morning because the UK is less likely to leave the EU, the pair has opened with a gap up and have increased with more than 230 pips, the rate was expected to increase because has found a very strong support level. The price was driven by fundamental factors even if we didn’t have high impact events.

The price has jumped much above the upper median line of the medium term descending pitchfork, right now is challenging the 1.4669 horizontal resistance, the current rebound was expected after the price has found strong demand right above the 1.4076 static support, the 50% Fibonacci line (descending dotted line), the pair could resume the upward movement if will stabilize again inside the ascending pitchfork’s body, you can see that the rate is trading above the lower median line of the ascending pitchfork. The price needs to take out the 1.4769 horizontal support if he wants to reach fresh new highs, the major upside target remains at the median line of the ascending pitchfork. The GBP/USD could reach the 1.4769 level very soon as the price remains strongly bullish, the buyers are determined to drag the price much higher on the short term, remains to see how the price will react when will touch the mentioned resistance. The GBP/USD could start a broader upward movement if will have enough energy to stabilize above the 1.4769 level, could increase further inside the ascending pitchfork, between the lower median line and the median line, we’ll have to wait for a confirmation right now because we could have another false breakout again, you can see that the pair has failed to consolidate above the upper median line in the last several attempts.

Personally, I’m waiting for the lower median line (lml) retest before will resume the bullish momentum, a rejection here followed by a drop below the lower median line could attract more sellers, which could lead the rate toward the sliding parallel line and to the broken upper median line (UML). As you can see on the H4 chart, the rate has registered an amazing increase after has reached and retested the confluence area formed at the intersection of the first warning line (wl1) of the ascending pitchfork with the 50% Fibonacci line (descending dotted line), the price needs to consolidate here to recapture energy, because will be very hard to jump above the major static resistance from 1.4769 level.

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