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Brexit Vote Wins...Catastrophe Awaits

Published 06/24/2016, 06:21 PM
Updated 07/09/2023, 06:31 AM

Further to my UPDATES noted on my last post, a massive Head & Shoulders pattern has formed on this GBP/USD Monthly chart...catastrophe awaits as price flirts with the neckline.

GBPUSD Monthly 1984-2016

But, the FTSE 100 Index closed the week 234 points higher than last week...Weekly chart below...

FTSE 100 Weekly 2012-2016

...so, while it has not yet experienced the plunge like that in 2007/08, it is threatening to at major support (where it has languished for the past year), as shown on the Monthly chart below.

While volatility remains elevated in world markets, it will be difficult to get an accurate read on firm and sustainable market direction for the foreseeable future...particularly if the Pound remains below 1.40 and the FTSE 100 remains at or below current levels.

FTSE 100 Monthly 2000-2016

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