 Hello and welcome to CMC Markets on Tuesday the 21st of June and this week's weekly market update. And it would appear to be that the markets are pricing in a remain vote in the UK referendum this Thursday. Certainly, I think if the performance of the pound and equity markets over the past few days is any guide, I think financial markets are pretty much made up their mind. But I think it's important not to get too carried away because ultimately while the money in the betting markets is moving towards a remain vote, the opinion polls still remain very split. And I think that's the important factor to price in. Even though we've seen a significant rebound in risk appetite over the course of the past few days, the outcome still remains by no means certain irrespective of what you think about the current rebound. Having said that, we've seen a very nice rebound in sterling and it's actually managed to recover back to the levels that we saw prior to the referendum being called on the 20th of February. We can see that here. These are the February highs and we've managed to recover well above that. We've also managed to push above the May highs as well. And we're currently above the 200 day moving average. We're also currently above the trend line resistance from the May highs. Which does tend to suggest that potentially we could well head towards 149. Now whether or not we get there, I think really depends on first and foremost the opinion polls over the course of the next couple of days. But I think also in the context of the moves that we've seen in the US dollar. Because I think there is a US dollar element to this current move in the pound. Sentiment got overly bearish last week. One month and one week volatility got back to an exceeded levels last seen in 2008. And as with anything with respect to an overstretched market, you always get a significant position readjustment when suddenly sentiment starts to change ever so slightly. So we had a bit of a dollar element in terms of a slightly more dovish than expected Federal Reserve at the end of last week as indicated by those comments from James Bullard, head of the St Louis Fed when he suggested that the Federal Reserve is probably only looking at the potential for a single rate rise between now and 2018. But also the shift in the polls away from leave towards remain. Those two catalysts I think have helped provoke the really sharp rebound that we've seen in the pound against the dollar. But also I think in risk appetite more generally. I think in terms of the pound, the rebound has been much more extreme. You can see that here in this daily chart here. The big gap between where we closed on Friday night and where we opened on Monday. And that does seem to suggest that if we do actually get back down to these sort of levels of around about 144 then we could see a little bit of latent buying coming in. But on the top side these levels that we were highlighting a few weeks ago with respect to 149 are still equally as valid as they were then despite the fact that we took out this trend line support here. We weren't able to break below 140 and I think ultimately in terms of the bearish sterling outlook that 140 level is very very key. The long shadow on that candle there would appear to suggest that there's a significant amount of buying interest down there. We've also got long shadows here and here as well. So we can see straight away that that level I think is very very key for long term direction with respect to the pound on the upside certainly looking at around about the 149 area. But broadly against the Euro the pound has also done extremely well. We've seen a significant pullback in Euro sterling drifted lower quite significantly and could well be heading back to the levels that we saw at the beginning of May. So that's a significantly key level around about 75, 60. More importantly on the daily charts these two moving averages here the 50 day and the 100 day are starting to look as if they're about to roll over which would appear to suggest that ultimately we could well have seen the highs in Euro sterling. But again you have to introduce an element of caution into that equation given what we've got coming out in the next two to three days. More broadly the FTSE 100 again got a little bit of a bear trap there when we broke out or broke out below that 60-50 level which we highlighted here quite recently got really burnt on that particular move there we broke lower for two or three days and then we got an aggressive snapback and we opened higher pretty much well correlated with sterling at the moment is the FTSE 100 we are looking to push higher above that 62-20 area 62-20, 62-30 I think that's a key resistance level could well head up to this trend line resistance around about 62-80 from the April and June highs more broadly we've also seen a significant rebound in Brent crude oil that continues to remain fairly well underpinned we can see that here on this Brent crude chart the oscillator is now starting to potentially point towards further gains there keep an eye on these two trend lines here from the February lows but also the lows in June we can see that the February lows here the line from February lows here acted as support and we did get a fairly positive bullish candle here as well as the 50-day moving average so that's a key support there around about $47.50 so those for me I think of the key levels with respect to the pound against the dollar the FTSE 100 and Brent crude that's it for this week probably will do another one of these videos over the course of the next few days given the Brexit referendum coming up otherwise that's it for this week thanks very much for listening this is Michael Houston talking to you from CMC Markets