The issue on the UK getting out as an EU member have resulted into a reverse market psychology leading to a price recovery for CABLE from the low @1.5170 and currently trading at 1.5400 on the high. A good reference point which can be technically treated as a support price where a probable rebound can take place. Refer to May 2015 as shown in the chart figure on CABLE.
This was a 360 degree turn compared to its decline from 2.0180 from the announcement that John Majors walked out from the ERM that led to a rapid decline in the FX market. And as for David Cameron stand on the possibility of UK leaving the EU; this may go beyond immigration and other financial benefits that would somehow affect UK policy. The difference is that this issue came to a point where CABLE prices were at the low end of the market. Although, the corrective phase of the USD began when it registered a 92.62 low last August which came from the rapid decline of the DOW in contagion with the China market.
As of this writing, GBPUSD strength and a mild price recovery for the EURUSD was reflected in the early European session when the USD declined @95.72 and trading towards the post holiday US trading session.
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| GBPUSD As of September 08, 2015 |
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