GBP/USD In Chaotic Position On ‘BREXIT’ Risk
FxGrow | Apr 06, 2016 07:33AM ET
GBP/USD is extending its weakness as ‘Brexit’ is creating volatility as it gets priced in. The BOE financial policy committee increased the countercyclical capital buffer rate for UK exposures from 0% to 0.5% and raises risks of the UK economy as more possibilities of the EU referendum ‘Brexit’ emerge.
The GBP/USD is still trading above the long term support 1.4057 but breaking 1.4080 will push the GBP/USD lower reaching 1.4030 and 1.3980 as next support points.
However, BOE financial stability might overcome the threats and cutting 1.4270 creates a bullish signal toward 1.4290 and 1.4344 as next resistance levels.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
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