They say that the technical side of the market is already has the information about upcoming news. That's why maybe all the technical analysts are not diving too deep into the fundamentals. I guess it's happening because of relatively same type of the news coming out every month which is why people have same reaction on them. So doing technicals we can just check this reaction on the history trying to predict where the market will go. However such event as BREXIT was never held before, so there's no previous reaction which the market could remember. And that is really interesting! I guess this is the great opportunity to make an experiment.
Here is the Monthly outlook on this pair. Of course I would not take any trades on it till the end of the madness, however I'm still watching it.
So as we can see the pair overall is in the downtrend making LH's and LL's. It is moving in the descending channel and has bounced off the upper border of it which is aligned with the 61.8% FIB and Weekly level of resistance. The price is below the Ichimoku cloud and we can see that 50 and 20 EMA's crossed and heading down as well. However right now the price is having difficulties with the Monthly lvl of support which is extremely strong as it's lines up with 200 EMA. Even though this month is not yet ended we already can see a huge bearish pressure on the forming candle as well as two previous candles. So with that being said we can see that actual ABCD is in play on the Monthly time frame unless the price will break above the channel and change the trend direction.
Here is the Monthly outlook on this pair. Of course I would not take any trades on it till the end of the madness, however I'm still watching it.
So as we can see the pair overall is in the downtrend making LH's and LL's. It is moving in the descending channel and has bounced off the upper border of it which is aligned with the 61.8% FIB and Weekly level of resistance. The price is below the Ichimoku cloud and we can see that 50 and 20 EMA's crossed and heading down as well. However right now the price is having difficulties with the Monthly lvl of support which is extremely strong as it's lines up with 200 EMA. Even though this month is not yet ended we already can see a huge bearish pressure on the forming candle as well as two previous candles. So with that being said we can see that actual ABCD is in play on the Monthly time frame unless the price will break above the channel and change the trend direction.
