EURGBP: ¿A turning point before Brexit referendum?

The daily financial markets are getting more cautious about polls and commentaries from Bank institutions previous to the Brexit referendum, which will be held at the end of June.

One of the most interesting Forex pairs to trade during the Brexit’s month will be the EURGBP, which in the daily chart is showing signs of exhaustion of the downward trend that began to develop since April 2015.

In a technical view, pair is facing the 100% Fibonacci extension from the April’s highs at 0.8119 level to the April 26th’s lows at 0.7735 level. That could be the sign that the bearish cycle is reaching a extreme zone.

Daily chart structure is also oversold, as the MACD indicator is showing a bearish divergence into that territory, and that will be a warning sign of a possible bullish trend’s turn in a medium-term basis.

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