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GBP/USD Weak Over Brexit Fears


Pound/Dollar is facing the negative side and opened lower for the week. The weekend polls showed fears over "Brexit", pushing GBP/USD to 1.4400 levels below the 50 SMA, this is the lowest level since May. The pool ran on ITV by YOUGOV showed 45% support for UK to leave EU, another poll named TNS showed a 43% support to leave EU. The "leave" campaign has taken the lead against the "Remain" campaign. GBP crosses have gained from this fear leaving the pound to the mercy of the sellers.

The bullish spike was faded and the price failed to remain strong above the 1.4520 levels, which have now turned out to be a strong resistance, and the price dropped towards the 100 daily smooth moving averages. Traders have positioned sell orders below 1.4350, a break below this level with 10% penetration would confirm the double top pattern on the daily chart, and the pair is like to be exposed to more sell orders towards 1.4115


Price has rebounded with a strong hold above 1.1300 where the 50 DMA is placed and this level becomes the lower block of the trading pattern, which stands as a bearish territory. A break below 1.1300 is likely to push the pair towards 1.1286 where the mid-term horizontal support is located. On the bullish front, the 23.6% fib situated at 1.1357 will continue to hold the pair lower; a break above this level with 3-sessionsustenance will advance the pair towards 1.1400 and 1.1450 levels.

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