Yesterday’s Brexit vote caused huge volatility as expected, with severe selling in the lead up to the event, which then reversed once the votes came in. Despite the uncertainty ahead, markets seem somewhat calm, with tonight’s vote of no confidence unlikely to succeed.
The British Pound made a few swing moves after it faced sellers near the 1.2900 resistance area against the US Dollar. The GBP/USD pair declined heavily below 1.2800, found support near 1.2670, and spiked back to pre-decline levels.
The pair gained traction above the 1.2800 resistance and the 50 hourly simple moving average. It also moved above the 76.4% Fib retracement level of the last decline from the 1.2915 high to 1.2670 low.
However, the pair is facing a tough resistance near the 1.2880 level and a bearish trend line on the hourly chart. A break above the trend line and 1.2915 high is needed for more gains in the near term.
On the downside, there are many supports for buyers near the 1.2820 and 1.2800 levels, below which it could test 1.2780 in the near term.