EUR/GBP - Possible Cypher set up ahead of June referendum

Brexit referendum is scheduled on June 23. There is every possibility that Brexit fears rise as we move closer to referendum date. In such a case, EUR/GBP could rise owing to broad based GBP sell-off.

A Potential Cypher pattern on the daily chart shows the leg D could end at 0.80 levels. As long as the daily candle does not close below 0.7586, the pattern remains valid. Leg C has reached 1.21, but the candle hasn't closed below 1.44.

On the way higher 0.78 is likely to act as a strong resistance.

Further losses are likely if the daily candle sees a close below 0.7586, in which case area around 0.7350-0.74 stands exposed (due to head and shoulder breakout).