Parameters

Entry: 1.3890/00 area and rally to 1.4044.

Stop: 1.4157 bid.

Target: 1.3780, 1.3690 or even towards 1.3503.

Time horizon: this week, ending Friday March 4.

Parameters

Entry: Sell GBPUSD at market

Stop: 1.3956

Targets: first 1.3728, second 1.3647

Time horizon: 1-3 session

GBPUSD: The British pound remains under pressure, it extended its decline and touched based on strong support at 1.3840-50. The pair lost a lot of steam after the rally to the multi-year lows on Brexit fears. From the technical point of view sterling remains oversold and has a good potential for the rebound, given that “No Brexit” campaign is getting more and more attention in media. Some polls indicate that >70% of market professionals are convinced that it won’t happen. On the other hand in the last few years we have seen a handful of events that were considered “unimaginable” and the market took a strong hit from those black swans. Probably the largest was Swiss National Bank’s CHF decision last January, but CNY devaluations were equally devastating, so it wouldn’t be wise to neglect Brexit completely.