EUR/USD
During the day on Wednesday, the EUR/USD pair rose slightly during the course of the session, but remains very much within the overall consolidation that we’ve seen recently. This makes a lot of sense as we get the United Kingdom voting on whether or not to stay within the European Union today. Ultimately, this is a market that will jump around from time to time, but it is not until tomorrow that we get the actual announcement as to whether or not the United Kingdom will remain within the European Union. Quite frankly, if it does not it will be very negative for the Euro in my estimation and we should start falling. However, the opposite of course is true as the United Kingdom staying in the European Union could very well work in the favor of the Euro, as it provides a little bit of stability. Expect a lot of volatility and danger trading this pair.
GBP/USD
The British pound rose again during the day initially on Wednesday, but turned right back around to form a shooting star yet again. This is the second time that we have tested the 1.48 level and failed, but that isn’t much in my estimation because there is the vote coming out today. With fact, it would’ve been a bit much to expect this market to break out to the upside for a longer-term move without some type of announcement as far as the biggest question in the financial markets are right now. With this, I think that this pair could very well drift lower initially, but then of course the vote will make all of the different.
There is a gap from a few sessions ago, and they do typically get filled so this point in time I still have a little bit of a negative bias but do recognize that with a “remain” mode and a move above the 1.48 level, this pair could continue to go much higher.
