Cable Rallies Over 200 Pips Amid Brexit Rumors

FXOpen

The Great Britain Pound (GBP) rallied more than 200 pips against the US Dollar (USD) yesterday, increasing the price of GBPUSD to more than 1.4250 amid Brexit rumors. The technical bias has turned bullish because of a Higher Low in the recent wave on a daily chart. The trend will continue to be bullish unless the yesterday’s bullish pin bar is invalidated.

Technical Analysis

As of this writing, the pair is being traded near 1.4255. A hurdle may be noted around 1.4332, a major horizontal support turned resistance ahead of 1.4502, another horizontal resistance and then 1.4739, the swing high of the latest major upside rally as demonstrated in the following daily chart.

Cable Rallies Over 200 Pips Amid Brexit Rumors

On the downside, the pair is likely to find a support around 1.4012, the intraday low of yesterday ahead of 1.4000, the confluence of a psychological number as well as the swing low of the latest major downside move. The technical bias will remain bullish as long as the 1.4012 support area is intact.

Brexit Rumors

The pound rally started as the news circulated that the U.K. Member of Parliament Jo Cox was killed after being shot at least twice following a meeting with her constituents. According to some sources, Cox, who is a member of the Labour Party, was a strong campaigner for the “remain” side for the June 23 referendum on whether or not the U.K should remain a member of the European Union. Campaigning for both sides of the referendum halted political activities for the day as a result of the tragic death.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair in short term may be a good strategy.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.