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The trading range is narrowing, however, it is too early to think about the breakout. With a high level of confidence we can suggest the pair can be highly volatile during this month, especially keeping in mind upcoming Brexit referendum. Currently cable is trading near two month lows hitting multi-year lows since worries over a UK referendum on European Union membership next week took hold. Traders were very different in their assessments, as the highest level called by Community members was 1.502, while the lowest point they expect to reach was 1.393. Despite such a scatter, the consensus forecast stands for 1.434, almost in line with the last week's average price of 1.44. The number of those who expect the pair to appreciate or move to the south, is almost equal. "Implied volatility increases in the pair nearing the EU referendum. A significant technical break was seen on Friday, but follow through may be limited without a clear catalyst. Poll numbers should have a limited effect while bookmakers and equity market provide conflicting signals suggesting a broader range in the pair with higher probabilities for a recovery this week" said Jignesh, who expects the pair to move higher. In contrast, megajorko stressed out that "It is impossible to predict what is coming due to the Brexit referendum. The cable is extremely volatile. Such volatility hasn't been seen since 2008 so I suppose that more probable is the bearish momentum to continue with all time new lows of 1.38 - 1.37 coming on the horizon".
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