Continuation of bearish action
Updated
Chart says it all really.
The Daily RSI and Stoch are well directed for further downside action and RSI is even below the 50 level. Also on the daily you can clearly see the large bearish candles.
Except for the RSI and Stoch that are somewhat overbought on 4H which might indicate a small corrective move the first day(s) of the new week. This is still very much in a bearish trend, a strong one at that with very large bearish candles.
Time will tell how far this bearish move can go. I'm expecting at least a move till the 1.9440 - 1.9390 consolidation region of the last bullish move. We saw some good reaction at this level in the past and this could give an indication that we get some consolidation again.
I'm less inclined to believe we go a lot lower, but if we do I'm just going to wait for some form of correction to enter again.
The Daily RSI and Stoch are well directed for further downside action and RSI is even below the 50 level. Also on the daily you can clearly see the large bearish candles.
Except for the RSI and Stoch that are somewhat overbought on 4H which might indicate a small corrective move the first day(s) of the new week. This is still very much in a bearish trend, a strong one at that with very large bearish candles.
Time will tell how far this bearish move can go. I'm expecting at least a move till the 1.9440 - 1.9390 consolidation region of the last bullish move. We saw some good reaction at this level in the past and this could give an indication that we get some consolidation again.
I'm less inclined to believe we go a lot lower, but if we do I'm just going to wait for some form of correction to enter again.
Note
Price seems to have broken support and is now consolidating before going lower but it could as well break higher again. I'm inclined to go with the first, that it's going lower till about 1.9150.Note
Price went lower as expected. It also clearly broke the important 0.5 level of the last move up. We should now be looking at the probability of even lower levels, i.e. sub 1.9100-1.9160. This would be 1.88. The Pound will remain under pressure till the start of the referendum a little less than two weeks from now.
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