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Today’s Trading Edge: GBP/USD remains heavy on Brexit concerns

Posted by WorldWideMarkets . on Mar 24, 2016 8:49:32 PM


The British pound is finishing the week on a lower note as concerns persist that support is growing for a Brexit, a British departure from the European Union.  Following the Brussels bombings, initial polls are not showing an increase in sentiment for leaving the EU.  The latest Survation polls showed 46% supported staying in the EU, while 35% voted for departing.  The British pound may trade in a range as global markets slow ahead the three day Easter holiday. 

The GBP/USD daily chart shows the bullish ABCD ended last week after price found resistance from the 1.4513 level.  A bearish bias may remain if price continues to trade below the 100-day SMA, which currently trades below 1.4268.  Initial support currently comes from the 1.4050 area.  If the bearish stance continues we could see price find key support from the 1.3850 area.  Further downside may be capped by the 1.3750 region.   

If price continues to stabilize and we see sentiment strongly shift to staying in the EU camp, major resistance will come from the 1.4650 zone. 

The trade: Sell GBP/USD at 1.4150 with a stop loss at 1.4200 and a take profit at 1.3950.  The Risk/Reward Ratio is 1:4

Topics: GBPUSD, cable, Sterling Pound, GBP/USD, $GBP, Sterling


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