I personally had strong hopes that British electorate will support the idea of staying in the union, which kept alive until almost last moments, as the pound even cracked psychological 1.50 barrier on Friday’s opening.
And then the facts that were coming turned situation into the opposite direction. Cable started to accelerate lower in early hours of Asian session, to gain substantial pace after results showed that Britain voted for Brexit.
Sterling plunged to fresh 31-year low on biggest ever fall, making around 10% loss, on even bigger fall than ‘Black Wednesday’ in 1992.
The pound entered uncharted territory eyeing next technical target at 1.3104 (Fibo 161.8% projection), with psychological 1.3000 support also being in near-term focus.
Strong negative sentiment that has been established could drive Sterling even lower, as technical show more room at the downside. Probe below 1.30 handle could extend towards 1.2650 (Fibo 200% projection), however, such strong move requires some corrective actions, as near-term studies are extremely oversold.
Current bounce is seen as a breather after overnight’s crash, driven by profit-taking action. Cable broke above initial resistance (former critical support) at 1.3500 and cracked1.3647 (Fibo 23.6% of entire fall from 1.5015 to 1.3225).
Next significant barrier lies at 1.3900 (Fibo 38.2%) and former breakpoint at 1.4000.

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