GBP closes with European currencies, favouring ‘Bremain’
Closing the gap
It appears that currency markets are now favouring ‘Bremain’ on heels of murder of British Member of Parliament Jo Cox. It is unclear whether this is a true reversal or some kind of retracement/short-covering/short-squeeze.
For now, GBP is closing its gap with European peers CHF, SEK, NOK and EUR.
The gap is now roughly 7% to the group against the USD. Recall that just 5 days ago, the chart looked like this. My own casual estimate for the entire gap to close is for EURGBP to undo YTD move to 0.7350.
Cheapest in 30 years?
This 12-month chart of GBPUSD from 1981 shows the pair above 2 psychological levels.
- 1.4541 was the lowest end-of-year close since 1984. This level was printed in 2001. For long term bulls looking at continuation of 30-year status quo, GBPUSD at/above this level looks cheap-oversold.
- 1.4566 is former 52-week low printed on 13 April 2015. Again such a former 52-week low offers support and positive sentiment as long as price stays above.
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Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
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