Fundamentals: - The UK came to its senses and a leave vote was a victory on Friday. This will of course cause a dip in the economy with the GBP reaching lows not seen since 1985 but just like 2008 it will bounce back except this time I believe it will be stronger than ever. We could see a drop to 12000 against the dollar over the coming week or the market might decide that it has been over sold all ready and start to instigate a buy back. Support levels are going to be hard to find so it is going to be a case of listening to the market sentiment and using candle stick patterns to look for reversal opportunities.
Technical’s: Once in a decade grade volatility
could be witnessed on the pair as the pound sold off reaching all time lows not seen in 2 decades. Going forward it’s hard to think more sellers would drive the market lower however after a pullback into the selloff it is very much possible. In the coming days and weeks look for the 14000 as major resistance, however catching the move up to the 14000 can be just as easy once intraday/ daily forms a higher low and has buyer confluence stacked, look for price and candle pattern to identify the turn around.
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