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GBPAUD sending the first sell signal for the British pound

Tech analysis by Simon Kazinsky on 12:20 June 23, 2016 EST

Whether it is because of the UK leaving the European Union or the confirmation that it will "Bremain" the British pound could see its value shrinking against its main counterparts soon. In the case of the first scenario the reasoning is simple enough but in the case the outcome of the referendum is the status quo the pound could give back some or all of its recent gains for two reasons.

The first one would be because of the by the rumour sell the fact effect. As the currency has appreciated lately on the back of the majority of polls pointing towards this outcome. The second reason is that the British pound is in a down trend versus most currencies on longer time frames.

GBPAUD is turning the first red light on the British pound dashboard as it breaks below a Moving Average that has served both as support or resistance on its recent upwards or downwards trends.