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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Tesla (TSLA) Leads Declines in the Equity Market
Shares

Tesla (TSLA) Leads Declines in the Equity Market

Yesterday, President Trump announced that letters had been sent to the United States’ trading partners regarding the imposition of new tariffs — for instance, a 25% tariff on goods from Japan and South Korea. This marks a return to “trade diplomacy”

Australian Dollar Strengthens Following RBA Decision
Forex Analysis

Australian Dollar Strengthens Following RBA Decision

Today, the AUD/USD pair experienced a spike in volatility. According to ForexFactory, analysts had forecast that the Reserve Bank of Australia (RBA) would cut interest rates from 3.85% to 3.60%. However, the market was caught off guard

What Is the Evening Star Candlestick Pattern, and How Can You Use It in Trading?
Trader’s Tools

What Is the Evening Star Candlestick Pattern, and How Can You Use It in Trading?

Candlestick patterns offer traders a way to read price action and spot potential changes in momentum. One notable pattern is the evening star, a three-candle formation that signals the start of a possible downtrend. This article breaks down what the

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. 60% 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.