After yesterday's down and up trading day, traders are sitting tight today
Yesterday, the GBPUSD moved lower by about 250 pips from the high before the key Brexit vote, then bounced about 225 pips higher after the vote (include the call for the vote of no-confidence). The high price stalled just ahead of the 100 day MA (currently at 1.2892). The run higher took the price back above the 200 and 100 hour MAs (currently at 1.27858 and 1.28272 respectively).
Today, the 100 day MA above (at 1.2892) and the 100 hour MA below (at 1.28272) have kept the pair contained. The low todayis 1.2824 (when the 100 hour MA was lower) and the high stalled at 1.28936.
Traders seem to be waiting the vote out after the down and up swings yesterday. We currently trade at 1.2858. At some point, there will be a break and run. After yesterday's price action, anything is possible. So let the price action and technical tools help guide the way (or just sit out and watch the uncertainty unfold).
There remains a lot of balls in the air including a potential extension of the March 29 finish line. First things first though is will PM May and her government survive the vote of no-confidence? That will take place at 1700 GMT/2:00 PM ET.
PS. This is my post from before the vote yesterday outlining the key targets/levels for the bulls and the bears. The levels remain largely the same with some of the refernces to the hourly chart a bit higher (i.e., the 100 and 200 hour MA targets).
