As debate goes on, the GBPUSD slips lower
The GBPUSD has moved to NY session lows and in the process are moving away from the 200 day MA at 1.4686. Earlier today, there was a run above the 200 day MA after waffling above and below the MA yesterday. The move above and then back below is probably not any indication of what may or may not happen. If you really think about it and given the uncertainty of the referendum, where should the price be centered? Around the 200 day MA is a logical place to be.
Through the event, the 1.43545 level - where the 100 day MA and trend line are found - will be a key level to get to and through. A break higher will have 1.4880-94 (50% and the low from Dec 2nd). Then traders will be looking for a level north of 1.5000 as more bullish confirmation. It has been 132 trading days since closing below the 1.5000 level (since December 17th).
The uncertainly has traders on the sidelines (and suggest that for retail traders). Anything can happen going forward and risk is sky high. I suspect many traders - professional and retail - are squared up and perhaps may give a punt after the event. What we don't know is the 1st print will be. How far will it go? We do not know.