Sterling extends falls

 Sterling extends falls, dropping more than 1.5% against the dollar to a 31-year low of $1.3055, leaving open the potential for a break below the $1.30 level. Technical analysts see little below $1.30 in the way of chart support, with low volume and high volatility leaving the potential for more substantial falls. Commerzbank technical analysts cite a 1992-2016 support line at $1.2972/65. Below that, they say $1.2750 would be the "last defense for the $1.0463 1985 low", although Rabobank cites a 61.8% Fibonacci extension level at $1.2459. EUR/GBP hits a 2.5 year high of 0.8546, just shy of the October 2014 peak of 0.8547; GBP/JPY slides to a three-and-a-half year low of 132.66,

Analysts have warned Brexit

Analysts have warned Brexit could diminish the pound's prestigious status as a reserve currency for central banks and governments. Fiera Capital's Jonathan Lewis the likes of the New Zealand, Canadian and Australian dollars--which have risen in the vote's aftermath--could be the main beneficiaries if sterling does fall out of favor. He notes those countries have strong balance sheets and free markets, which will make them an attractive alternative to sterling. Central banks hold assets denominated in reserve currencies--most often the dollar and euro--that they can use to protect their own foreign-exchange rates

Traders can see the US Dollar Index

Dollar index is a index that follows other currencies and measures the strength of the dollar compared to other currencies. It is a weighted geometric mean of the dollar's value compared only with. If you are trading the forex market you should also be watching the dollar index. Many times the dollar index will move in the opposite direction of the  EUR/USD and the GBP/USD. By watching the chart of the dollar index on a one minute chart, and have your forex chart set at five minutes many time the dollar index will show a move. This happens many times especially if there is a spike in the index. The EUR and GBP will move in the opposite direction.
Euro (EUR), 57.6% weight
Japanese yen (JPY), 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight and
Swiss franc (CHF) 3.6% weight.
 

Trade the dollar index

USD/CAD

Summary :
Target Level : 1.2763
Target Period : 3 days
Analysis :
Head and Shoulders identified at 22-Jun-00:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 1.276 within the next 3 days.
Supporting Indicators :
Downward sloping Moving Average
Resistance Levels :
( B ) 1.2827Last resistance turning point of Head and Shoulders.
Support Levels
( A ) 1.2763Last support turning point of Head and Shoulders.

 

USD/JPY Chart

Summary :
Target Level : 107.1815
Target Period : 3 days
Analysis :
Falling Wedge identified at 15-Jun-04:00 2016 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 107.182 within the next 3 days.
Supporting Indicators :
RSI below 40
Resistance Levels :
( B ) 107.1815Last resistance turning point of Falling Wedge.
Support Levels
( A ) 105.7385Last support turning point of Falling Wedge.

 

USD/JPY Chart

Summary :
Target Level : 104.6482
Target Period : 3 days
Analysis :
Descending Triangle has broken through the support line at 13-Jun-02:00 2016 GMT. Possible bearish price movement forecast for the next 3 days towards 104.648.
Supporting Indicators :
Downward sloping Moving Average
Resistance Levels :
( A ) 107.173Last resistance turning point of Descending Triangle.

 

trade your plan

Trading the professional way really involves common sense.  We should buy stock on sale and sell it when it becomes expensive, not the other way around
When you trade you must fire on all cylinders; you must access and activate your resources, strengths and mental weapons in the psychological warfare which is trading.  The trading trenches are not a place to vacillate and equivocate; you must be willing to demonstrate your ability to focus on what matters most in the trade.  You must be willing to plan your trade and trade your plan with complete follow-through of all of your rules.