Trading Forex and CFDs is risky

GBPJPY Retraces to target

Market Analysis
2016-06-07_10-01-14

GBPJPY, Daily        

Following the big gaps on the GBP pairs yesterday  after the surprise lead for the Leave group in the UK EU Referendum, I wrote that GBPJPY “Technically sterling is looking oversold, and should retrace from here. I expect some retracement from this current oversold level (153.30 at the time) to the 156.00 – 157.000 area”.

Thanks in part to more polls, Sterling rallied on new Brexit polls, which indicate a swing back of support for the Remain-in-the-EU campaign, the retrace was completed with 24 hours for a net gain of over 200 pips.

Two new polls, a YouGov survey for the Times and an ORB telephone poll for the Telegraph, showed the Remain camp in the lead, reversing yesterday’s polls that showed the opposite. Cable spiked over 1.5% to an eight-day peak of 1.4662 before ebbing back to the low 1.45s, still up over 50 pips from yesterday’s closing level. The mix of the Brexit polls and the thin market for sterling in Asia caused the whippy price action.

 The Daily support remains at 154.30 and this level needs to be breached and broken before any further down action, on the upside 160.60 and 162.00 will provide resistance.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Market Analyst 

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.