Review and dynamics
After the UK’s decision to leave the EU, the pair has lost over 11%, falling by 1500 points.
Despite the attempt to regain after the dramatic fall, the pair GBP/USD is still under pressure.
Since the opening of today’s session the pair has lost about 120 points. The price of the pair is by 500 points below the 15-year lows.
On the daily, weekly, monthly and 4-hour charts the indicators OsMA and Stochastic continue to show the decline in price.
Until the markets calms down after the Brexit and the Bank of England starts to determine actions, the pair GBP/USD will continue to go down.
Technical analysis loses its importance under the pressure of the fundamental factors.
As long as the price remains below the levels of 1.3650 (lows of 2009 and 2001) and 1.3670 (closing price of the “Black Friday”), deep correction and the rise in the pair are not expected.
At 12:00 (GMT 2) the head of the Bank of England Mark Carney will give a speech. Market is prepared to hear negative prospects for the monetary policy of the Bank. The pair GBP/USD is in the downtrend.
Support levels: 1.3100, 1.3050 and 1.3000.
Resistance levels: 1.3290, 1.3430, 1.3530, 1.3650, 1.3670, 1.3700, 1.3800 and 1.3860.
Sell on the market. Stop-Loss: 1.3230. Take-Profit: 1.3100, 1.3050 and 1.3000.
Buy Stop: 1.3230. Stop-Loss: 1.3190. Take-Profit: 1.3300, 1.3430, 1.3600, 1.3650, 1.3670, 1.3700, 1.3800 and 1.3860.
Indicators give signals to sell
Dramatic decline of “Black Friday”