The GBPUSD experienced a sharp decline on Wednesday following the heightened Brexit fears which have continued to repel investor attraction towards the currency. This pair remains under immense pressure and the breakdown below 1.42 may have opened a path for a further decline towards 1.40. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD trades deep into the downside. Previous support around 1.42 could act as a dynamic resistance for a sharp drop low towards 1.40. A bullish move back above 1.44 suggests bearish weakness and invalidates this daily bearish outlook on the GBPUSD.
The growing expectations over the possibility of a Brexit following the attacks in Brussels have induced a heavy Sterling selloff across the markets with bearish investors attacking the currency at any given opportunity. Pound weakness has been one of the main catalysts which has provided a platform for the GBPJPY to sink back below the daily 20 SMA. This pair is turning increasingly bearish and the decisive break down below 160.00 may have opened a path towards 156.00. From a technical standpoint, previous support at 160.00 should act as a dynamic resistance which may invite another steep decline back to 156.00. A bullish move back above 164.00 suggests bearish weakness and invalidates this daily bearish outlook.
This pair has followed a negative path for an extended period with prices declining a mammoth 3800 pips from the 2.24 peak in August 2015 and remains heavily bearish on the daily timeframe. There have been consistently lower lows and lower highs while prices have found stability below the daily 20 SMA. As long as the previous lower high at 1.9050 resistances defends firmly, bears may send the GBPAUD lower towards 1.8500. A bullish move back above 1.9050 suggests bearish weakness and invalidates this bearish outlook.
GBPCHF bears have remained in control with prices sinking towards the 1.38 support during trading on Wednesday. This pair remains heavily bearish and a daily close under 1.38 may open a path towards 1.36 in the medium term. From a technical standpoint, previous support at 1.38 should transform into a dynamic resistance which may encourage bearish investors to attack the GBPCHF lower towards 1.36. A move back above 1.385 suggests bearish weakness.
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