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GBP/USD breaks major support 1.4000, decline till 1.350 is possible

  • GBP/USD has broken major support 1.40791 (Jan 2016 low) and declined till 1.39248 at the time of writing .

  • Overall trend is weak and it is expected to decline till 1.4350 (2009 low).

  • Bearish invalidation only above 1.4550 (support turned into resistance).

  • Prevailing uncertainty about the outcome of the crucial referendum on the UK's future in the EU is likely to be the main source of downside pressure on GBP/USD. If UK exited out of EU decline till 1.200 is possible.

It is good to sell on rallies around 1.4020-25 with S L around 1.4550 for the TP of 1.4230/1.4355

 

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