The Cable has decreased aggressively today as the UK is to leave the European Union, the international financial markets have plunged as well, most likely the downward movement will continue in the coming week, when the GBP could approach today’s low, the GBP/USD has rebounded in the US trading hours, but the bearish perspective remains intact, the pair has dropped.
The USD has decreased as the United States economic data has come worse today, the greenback has taken a hit from the US economy, the Core Durable Goods Orders have decreased by 0.3%, even if the traders have expected a 0.1% increase, the economic indicator has decreased again after one month and have reached the lowest level of the last 3-months, while the Durable Goods Orders have plunged by 2.2%, much more compared to the -0.5% estimate, the indicator has decreased after two consecutive months increase and have reached the loweste level of the last 3 months. Moreover the Revised UoM Consumer Sentiment has decreased from 94.3 to 93.5 points, much below the 94.2 estimate and have punished the greenback. Meanwhie the UoM Inflation Expectations have increased by 2.6%.

The rate has plunged aggressively and has reached fresh new lows, has decreased more than 1700 pips, has managed to fall below the median line (ML) of the descending pitchfork, but has failed to stay lower and now is trying to retest the broken median line, the perspective will remain bearish as long as the rate will stay below this dynamic resistance (support turned into resistance). The pair increase in the coming days only if the price will close again above the median line, we could see a short rebound in the coming days, after the massive drop, the rate has failed to reach and retest the lower median line of the descending pitchfork. The pair was driven by fundamental factors, the medium term perspective remains bearish as the rate has failed to stabilize above the upper median line of the descending pitchfork, the rate has reached new lows in yesterday’s trading session, but the bears have taken full control and have driven the price down. The outlook is bullish as long as the rate is trading inside the descending pitchfork’s body, the price had increased in the start of the week because there were rumors that the British will vote not to leave the EU.

You can see on the H4 chart that the rate has rebounded and has recovered, but the sellers are pushing the price down again, any close below the median line (ML) followed by a retest here will open the door for more declines in the coming days and weeks.

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