Due to the Fed chairman speech, Yellen, USD gained momentum and could drag down GBPUSD yesterday. Despite its bullish bias yesterday, GBPUSD had a sharp fall within the descendant channel. Now the support rests at 1.44360 with resistance at 1.45320 which both lines are below the weekly pivot point at 1.4603. The EMA of 10 is sharply falling down crossing the EMA of 75. All indicators are signaling sell opportunity; the MACD indicator is in negative territory, the RSI is in neutral zone, the Stochastic is showing downward momentum and the ADX is showing strong sellers. It worth mentioning that this pair is also prone to sudden changes due to the Brexit issue therefore traders must be really cautious. At the moment, short positions are recommended with the target at 1.4400.
GBPUSD analysis for 01.06.2016
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