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GBPUSD and FTSE 100 Future Decimated by UK Leave Vote!!

Technical Analysis

A historic vote in the UK on Thursday resulted in a decision to leave the EU.

This political event produced an aggressive sell off in the GB Pound, with GBPUSD breaking down to its lowest level since 1985.

Furthermore, the FTSE 100 future dropped just over 10% at one point, to damage the technical outlook in both the intermediate and longer terms.

GBPUSD

An aggressive plunge lower Friday after the UK decision to leave the EU, through 1.4004 to trigger an intermediate-term bear shift (reinforced through 1.3834 and 1.3504) to leave the June/ July risks still lower.

Despite an intraday bounce Friday, we also see a bear tone for Monday.

For Today:

  • We see a downside bias for 1.3548/14; break here aims for 1.3388 and 1.3226.
  • But above 1.3783 and 1.3838 opens risk up to 1.3981 and 1.4123.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to 1.3226
  • Below here targets 1.3045/1.3000, 1.2817, 1.2565, 1.2000 and 1.1880 (risk to 1.1000 and 1.0520?!?!)

What Changes This? Above 1.4635 signals a neutral tone, only shifting positive above 1.5019.

FTSE 100 Future

A plunge lower Friday to reinforce the previous surrender in June of the key 5881 level (continuation chart) that leaves the intermediate-term bias for June/ July still lower.

Despite an intraday rebound Friday, the roll lower later in the session sets a bear tone for Monday.

For Today:

  • We see a downside bias for 5929/25; break here aims for 5866/40, then 5782.
  • But above 6051.5 opens risk up to 6175/93.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to 5675.
  • Below here targets 5545, maybe 5329.5.

What Changes This? Above 6334  signals a bullish shift.

 

Daily FTSE 100 Future Chart

FTSE

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