Cable up ahead of BOE

Having no particular reason today the GBP/USD pair is seen uplifted and leaving the tight range from the past several sessions. One thing is sure, the spirit level is higher ahead of BOE’s rate decision on Thursday, when the first rate hike from a decade is expected. The Central bankers are going to rise the rates by 25 basic points on the back up of resilient post-Brexit UK economy.
The GBP/USD is trading up with 0.29% for the day with current market price 1.3245.
From technical point of view, the short term outlook is neutral to bullish. On the four hour time frame the price has crossed to above the 20-day and 100-day SMA, while the 200-day SMA is staying flat and is acting as a dynamic resistance around 1.33 level. Stochastic is located withing extreme overbought territory, but has lost directional strength. RSI is marking higher highs and lowers lows and is aiming north.
Having in mind above, bulls are well supported, but first will have to conquer the immediate resistance at 1.3275 (23.6% Fibonacci retracement of early October bullish run) with next target on the psychological level 1.3300.  

London BREXIT Update: One month to Referendum | Webinar review

Brexit time nears and very soon the fluctuation that has towered UK  will  vanish.
The more referendum campaign intensifies, the more UK economy is seen in underlined shaky mode.
But until 23th June the walls of uncertainty will be standing still and most important now is how to outrun the fears that chase the market.

The Brexit scenarios, market reaction and an insightful vision how traders could be positioned were presented on yesterday’s webinar, held by ActivTrades and led by the professional trader Paul Wallace.

The most important questions that will follow Brexit are:
1. What kind of EU/UK negotiations will get?
2. Will we see further EU integration or the opposite?

Brexit scenarios implemented in short and long term are very well explained by this pattern:

What will be the market reaction in short and long term view?
First of all we should think about what will be the short term market reaction driven by the possible consequences for the remaining EU members and then to take into consideration the long term market development based on the assumption of EU development in case of split or integration.

With the upcoming Brexit referendum definitely traders are concerned about trading the GBP forex pairs. Paul Wallace shed a light over the most likely scenarions and shared some tips how traders might be positioned.

Important information

Having in mind that the upcoming referendum will bring significant volatility and turbulence in financial markets, my broker, ActivTrades will protect the capital of its clients at market opening on 20th June 2016 by temporarily increasing quadrupled the required margin under the following instruments:

Forex: GBPUSD, GBPCHF, GBPAUD, GBPCAD, GBPJPY, GBPNZD, EURGBP

Indices: UK100

In addition, temporarily the reqired margin for the following instruments will be increased twice:

Forex: EURUSD, EURJPY, EURCHF, EURAUD, EURCAD, EURNZD, EURHUF, EURNOK, EURSEK, EURSGD, EURTRY
Indices: BLG20, ESP35, EURO50, FRA40, GERTEC, GER30, ITA40, NETH25
Shares: CFD tools on British shares

If you have open positions on the above mentioned tools, ActivTrades warns to monitor the levels of your margin account and if necessary to reduce positions by the end of trading session on 17 June (Friday).

If you are willing to have a brighter outlook, follow this link!