GBP/USD – Bearish break but intraday RSI oversold

13 ביוני 2016

Resistance – 1.42, 1.4277, 1.4330

Support – 1.4193, 1.4132, 1.4080

• Cable suffered a bearish weekly closing as discussed here on Friday, there by opening doors for a fresh bear trend.
  

• Prices dropped to 1.4160 in Asia, pushing the hourly and 4-hour RSI to oversold territory.
  

• Hence, a temporary loss of momentum followed by a minor correction to 1.4330 cannot be ruled out.
  

• However, given the bearish weekly closing and daily RSI at 35.00, upticks are likely to be met with fresh offers, thus crucial support levels mentioned above stand exposed.
  

• Gold in terms of GBP or XAU/GBP could rise sharply ahead of referendum as compared to drop in Cable as rising uncertainty would not only hurt GBP but could also push up international gold prices.