Global macro overview for 24/02/2016:
BoE Governor Mark Carney said in Britain's Parliament yesterday that the UK central bank made no judgment on potential outcome of UK's referendum on its EU membership, but it is closely watching the financial markets reactions. Moreover, he insisted that the BoE is not interested in introducing negative interest rates unlike other central banks ( ie: BoJ, ECB). After such remarks, we might conclude that further changes to the BoE interest rate were postponed for event later as a high possibility of Brexit is raising uncertainty in the financial markets. The national referendum in the UK is scheduled for June 23, 2016.
Let's now take a closer look at the GBP/USD technical picture in the monthly chart as there are only three days left for the monthly candle close. The market is clearly in a downtrend and this downward move has been accelerating since the Brexit date was announced. The next monthly support is seen at a low of 1.3506, previously reached in 2008. Currently, the market has only about 400 pips to test this level before the month ends.