The UK is facing a critical economic situation and its currency is losing power against other currencies. GBPUSD is under the influence of the 10-year British bonds yield and the credit rating of the UK as well. Despite the pair’s attempt to rise after the historical low at 1.32231 the strong pull backs dragged the price down again. The support lies at 1.33280 with resistance at 1.34480 which both lines are below the monthly pivot point at 1.45270. Both the EMA of 10 and 75 are falling sharply and have passed the pivot point as well. All indicators are signaling sell opportunity, the RSI has already reached the oversold area but has been moving in that area since the referendum, the MACD indicator is in negative territory and the Stochastic is showing downward momentum. Short positions are recommended with the target at 1.3300.
GBPUSD analysis for 27.06.2016
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