GBP/USD Coming a Cropper this Week on Brexit Fears
GBP/USD has taken a beating, falling this week from 1.4395 meeting a low of 1.4095 so far with strong momentum.
The concerns over Brexit are mounting with the media reports coming through thick and thin, most of which are expressing the major concerns and negative outcomes of an exit from the EU, while polls are around 45% in favour of an exit currently.
"Those that are opposed to Brexit have largely relied on, it seems, on a negative campaign that paints a horrific picture of the consequences. That alone show an important shift in the psychology. Even the "remain" camp struggles to articulate a positive message about the benefits of the EU. There does not appear to be a pro-EU camp. Rather the UK appears to be split between the soft EU skeptic and hard EU skeptic camps," explained analysts at Brown Brothers Harriman.
Analysts at Scotiabank explained that the daily chart shows a neat bear flag formation developing since the late February bounce from 1.3860; "Cable has lost some of its recent luster by dropping back under the 40-day MA and will lose more technical ground – perhaps quickly – on a break under the bear flag base at 1.4147 currently."
(Market News Provided by FXstreet)