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GBP Opens the week very weak

Market Analysis
2016-06-06_10-26-35

GBPJPY, Daily        

Big gaps on the GBP pairs this morning as two new polls shows the “Leave “ camp moving into the lead. 17 days to polling  day and a poll by YouGov for ITV’s “Good Morning Britain” has the leave camp on 45% and Remain on 41%.  A poll by TNS has the Leave camp with a 2% lead on 43% and Remain on 41%. 16% of respondents polled by TNS were Undecided.

Ladbrokes now has a Brexit at 30.7% up from 28.5% June 1.

The GBP fell on the news in Asian trading and has fallen further as the European session opens. Sterling is currently 0.7880 against the EUR, GBPUSD touched 1.4351 before covering to 1.4400 and GBPJPY broke 153.00 before recovering to 154.32.

Technically sterling is looking oversold, and should retrace from here. The GBPJPY pair could test the April and Fibonacci low of 151.80, and further down the Monthly time frame support is at 148.80.  The Daily support of 154.30 needs to be breached and broken before this next leg down.  I expect some retracement from this current oversold level to the 156.00 – 157.000 area.

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Stuart Cowell

Market Analyst 

HotForex

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