FxWirePro: GBP/USD below 1.4343..? Bears slipping through sloping channel, retest of multi months lows very much on cards

Current price whipsaws DMAs, breaks below support 1.4390 levels to evidence bearish rout, RSI & Stoch are indicative of further dips, DMAs to substantiate.

Today again day highs haven’t been able to sustain and has rejected resistance at 1.4497 levels (see price behaviour from last 4 consecutive days on daily charts).

RSI: Currently, RSI (14) trending below 53 levels converging to the price fluctuations as there is no clarity about the trend from this oscillator, on closing basis movement should be closely watched if it suggests downward signals.

Stochastic: It alarms bears trying to take over the tight rallies as the slow stochastic noises with the attempts of %D line cross over near oversold region (current %D line flashes at 26.0100).

During the intraday sessions with bearish sentiments mounting the pair attempted to travel towards supports at 1.4393.

See for more price dips of 50 pips with ease upon break below supports at 1.4393 levels, on the contrary, a decisive break out above resistance at 1.4462 levels can also be equally favourable for short term bulls.

On long term perspectives, bear swings are moving in sloping channel, this month it has rejected at channel resistance to slip below 7EMA again. We see strong support at 1.4343 levels on monthly terms, one can again see serious weakness in this pair.

MACD’s bearish crossover continued to move below zero levels which is bearish region.

Hence, we would foresee GBP on weaker side on BoE's alerts of the economic risks if Britain votes to leave the European Union, saying on Thursday that sterling could tumble harshly and unemployment would probably rise. The central bank sends this caution of this event risk after leaving their bank rates unchanged at 0.50%.

Trade tips: As a result of above technical and fundamental incidents we see pair likely to head towards 1.4229 levels in medium terms and retest of recent multi-month lows at 1.39 can also not be ruled out, thus it is advised to be short in mid month futures contracts.