- GBP sold-off in a spontaneous reaction to the result of the UK vote.
- GBP/AUD slumps 1.84 percent on the day, is currently trading at 1.6837.
- The pair has broken minor trendline support at 1.7066 levels, bias largely bearish.
- Bears now eye 200-DMA at 1.6709, violation there could see 1.6683 (weekly 20-SMA). Bearish invalidation only on close above 20-DMA at 1.7291.
- RSI below 50, biased south. Stochs are also biased lower and MACD supports trend lower.
- Technical indicators on weekly charts are also biased lower, RSI points south, while Stocks are on verge of rollover from overbought zone.
Support levels - 1.6776 (50% Fib of 1.5902 to 1.7650 rally), 1.6708 (200-DMA), 1.6695 (100-DMA)
Resistance levels - 1.6880 (Apr 24 low), 1.6983 (38.2% Fib), 1.70
Recommendation: Bias lower, stay short.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -176.78 (Bearish), while Hourly AUD Spot Index was at 119.154 (Bullish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
