Sterling caught in a Brexit sandstorm
- Sterling under severe pressure as polls give 'Leave' campaign momentum
- GBPCHF reacting most violently ahead of key central-bank meetings
- EURGBP pushing towards the 0.80 area
- GBPUSD in sight of March lows
- Keep it on our Brexit pages throughout the runup to the vote
Left for in, right for out? Photo: iStock
By Kim Cramer-Larsson
Of all the sterling crosses, GBPCHF is the one reacting most violently to the Brexit polls and with the respective central banks of the UK and Switzerland on tap this week, the potential for yet more fluctuation is there.
The pair is literally dropping like a stone approaching the April 2016 trough below 1.35.
GBPUSD is dropping below the falling neckline from the shoulder-head-shoulder pattern that unfolded in the first quarter of 2016.
Friday's massive move took RSI below the 40 threshold and Bollinger bands are widening. Cable is approaching the lowest level in the March consolidation area at around 1.40. That would also be the 1.786 projection level derived from the double-top pattern which is roughly the usually meeting price target*.
GBPUSD is in sight of the March lows
Trading the Brexit vote?
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