The GBPUSD is heavily weighted by Brexit sentiment and it continues to fall. Recent reports suggest that referendum results could be very close , neither side has an advantage.
As I have stated many time before 1.4050 is very important. Currently we can spot a breakaway gap that technically reflects the sentiment of GBP traders. Its bearish. Breakaway gap usually signifies either a new or trend continuation more likely the new trend. After some consolidation the pound made a huge move down and only a retracement towards POC should show new sellers. POC (50.0,breakout point,EMA89) is 1.4220-35 zone and in that zone historical sellers are aligned with now moment. Any other selling towards 1.4050 is impulsive one, making another testament to strength of a breakaway gap.
In the lower left corner, we can see Monthly Head and Shoulders variant and 1.3930 and 1.3840 are next targets for GBPUSD IF 1.4050 breaks. 1.4050 is weekly CAM L5 support so the level is surely defended. Huge stops below.
Watch for any signs of retracement towards POC or continuation towards 1.4050.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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