GBP/USD: Trading Day began with a gap _20/06/2016

Trading recommendations

Sell ​​Stop 1.4470. Stop-Loss 1.4550. Take-Profit 1.4420, 1.4335, 1.4200, 1.4185, 1.4100, 1.4045, 1.3860, 1.3650, 1.3600

Buy Limit 1.4600, 1.4540. Stop-Loss 1.4490. Take-Profit 1.4700, 1.4740, 1.4800, 1.4860, 1.5000, 1.5110, 1.5230


Technical analysis

Indicators OsMA and Stochastic on the 4-hour, daily, weekly charts recommend buying on the monthly chart - are also deployed on long positions. On the monthly chart formed "hammer" candle, which indicates a reversal of the downtrend if the price at the end of the month will be above $ 1.4660.

Gap at the opening of today's trading day in the GBP / USD pair has made more than 110 items and the positive dynamics of the pair is maintained.

In a strong positive impulse to the price broke through the resistance level of 1.4625 (Fibonacci 38.2% correction of growth to decrease from the level of 1.5230 since mid-December 2015) and reached the 1.4650 resistance level (EMA200 on the daily chart). As a result of Friday's pair of growth on the weekly chart formed a pin-bar, which is already practiced with today's active growth.

If the positive dynamics of the pair continues, until Friday, when the results of the referendum will be known, the price can either remain in the range of 1.4540 (EMA144 on the daily chart) - 1.4650 (EMA200) or rise to the level of 1.4740 (EMA50 on the weekly chart).

Further dynamics of the pair (after the publication of the referendum results at 04:00 (GMT + 2) on Friday) to predict quite simple. This strong growth, if the British vote for it to stay in the European Union, the slump in the opposite case.

In any case, it will be given plenty of shopping opportunities.

For a more or less objective technical analysis will be back next week when the markets calm down.

Support levels: 1.4600, 1.4540, 1.4500, 1.4420, 1.4335

Resistance levels: 1.4650, 1.4740, 1.4800, 1.4860


Overview and Dynamics

A referendum on Britain's membership in the EU will be held June 23 and the results will be published at 02:00 (GMT) on Friday. The withdrawal can cause upheaval not only in the UK and the European Union economy, but also in other parts of the world.

It may also be tempted to exit from the EU and other countries. First of all it may concern Ireland, whose economy is closely linked to the British, the Portuguese, the banking system is a problem which may be deprived of cheap ECB loans.

After the attack on Thursday in the British Member of Parliament Joe Cox, who later died in the hospital, waiting for the continuation of the UK's membership of the EU continue to gain momentum.

The results of the survey, which Survation company published on Sunday showed that 45% of voters would vote for EU membership, while 42% would vote for an exit. Sunday YouGov poll showed that support for EU membership 44%, and the yield - 43%. The result of the last survey was encouraging a sharp appreciation of the pound and the pair GBP / USD at the opening of the trading day on Monday. Gap at the opening was more than 110 points and the positive dynamics of the pair is maintained. Voting results for UK membership of the EU will be known on Friday. If there is no other negative news of economic and political character, on this positive note, the pair GBP / USD can hold out until the publication of the referendum results.

If the British vote for the output, as warned earlier in May, the head of the Bank of England Governor Mark Carney, the weakening of the British pound and the stock market may be more than 20%. Can long-term follow sharp drop in GDP, rising unemployment and, as a consequence, the fall in living standards in the country. Financial market movements as a result of a strong reallocation of funds will be long and ambitious.