GBPUSD, Daily
A referendum has been announced for Jun-23, London mayor Boris Johnson yesterday said that he will be backing the ‘out’ campaign. The uncertainty ahead will be bad for business, with large companies now seen as supporting the “in” campaign, we expect GBP to underperform heading into the referendum.
Technically, the 1.4235 area looks to be an important price point to watch out for, a clean break below could open up the way for further downside pressure towards the 1.4080’s (January Lows). Current price is below the valid downward sloping trend line, as well as , its short (10) and medium term (50) moving averages. 1.4235 looks now to be a valid resistance level, my conclusion is to remain short as long as price can hold below 1.4235 for a 1.4080 target. However, traders should remain on alert to reverse short sales upon any potential price break back above 1.4235 for a potential bounce towards the 1.4530’s.
Janne Muta
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
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