GBP/USD - Breakout may happen this week

Jun 20, 2016

On the weekly chart, we can see two falling trend lines - Blue and red.

• At 1.4660, the spot is back above blue trend line, but still needs to take out red rising trend line.
  

• Note that blue trend line was breached quite a few times on day end closing basis, but on the weekly closing basis the resistance stayed intact.
  

• However, the breakout may happen this week. Popular opinion is that Uk staying in EU would boost Pound and gilt yields and vice versa.
  

• Either we would have a clear breakout or a failure which would indicate sell-off.