Key Points
- The British Pound despite of a lot of bearish pressure vs the US Dollar managed to stay above a major support area.
- There is a monster bullish trend line formed on the daily chart of the GBPUSD pair, which may play a major role for the GBP moving ahead.
- Today, the Reuters/Michigan Consumer Sentiment Index will be released by the Reuters/University of Michigan.
- The market is expecting a minor decline in the Reuters/Michigan Consumer Sentiment Index from 94.7 to 94.0 in June 2016 (preliminary).
Technical Analysis
The British Pound traded mixed during the past few days against the US Dollar, as there were a lot of news related to Brexit. However, the GBPUSD pair remained supported by a monster bullish trend line formed on the daily chart.
Moreover, the pair is also above the 100-day simple moving average, which is a positive sign for the GBP bulls in the near term.
The daily RSI is just above the 50 level, so if there is a break down, then GBPUSD may come under a lot of pressure in the near term.
Reuters/Michigan Consumer Sentiment Index
Today in the US, there is hardly any major release. The only one to watch out will be the Reuters/Michigan Consumer Sentiment Index, which will be reported by the Reuters/University of Michigan.
It represents a survey of personal consumer confidence in economic activity and shows a picture of whether or not consumers are willing to spend money. The market is expecting a minor decline in the index from 94.7 to 94.0 in June 2016 (preliminary).
Let us see how long the GBPUSD pair can hold the trend line and support area, as there may be an increase in the bearish pressure due to Brexit fears.
