- BNZ (based on WBP Online)
Ahead of the EU referendum the Pound managed to appreciate against the US Dollar for another day yesterday, but still unable to pierce the 23-month down-trend. Everything now depends on the ‘Brexit' poll results, but from the technical point of view, a ‘Brexit' is more probable, as the Cable would then reconfirm the down-trend. Consequently, a drop beyond the 1.45 mark could take place, unless demand around that area, represented by the weekly R1, the monthly PP, the 20 and the 55-day SMAs, is strong enough to limit the losses. On the other hand, ‘Bremain' outcome might lead to a strong rally, with the exchange rate even climbing over the 1.50 major level today.
Market sentiment is bearish at 58%, whereas the portion of orders to purchase the Sterling takes up 57% of the market.