GBP/USD Forecast: Choppy Price Action Ahead of the Referendum

GBP/USD Forecast: Choppy Price Action Ahead of the Referendum

8 June 2016, 12:11
Roberto Jacobs
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GBP/USD Forecast: Choppy Price Action Ahead of the Referendum

The GBP/USD pair trades neutral around its daily opening, bouncing from a daily low set at  1.4500 with the European opening, after the release of much better-than-expected Manufacturing and Industrial Production figures for April, as the first rose by 2.3% monthly basis, against previous 0.1%, whilst the second advanced by 2.0% against previous 0.3%. 

The upward surprise has barely affected the pair, as the Pound remains subdued to Brexit woes. Trading remains choppy around it, with large intraday spikes either side of the board failing to set a clear bias, ahead of the Brexit referendum next June 23rd.


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Anyway, and after Tuesday's recovery, the intraday technical picture favors the upside, with the 20 SMA advancing above the 200 EMA, around 1.4480, whilst the Momentum indicator keeps heading north within positive territory. Still, the pair needs to advance now beyond 1.4585 to be able to extend its gains, with the next short term resistances at 1.4620 and 1.4660. Below the daily low on the other hand, the pair could quickly decline down to 1.4460, en route to the 1.4400/20 price zone. 


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