GBP/USD Reclaims 1.4500 Handle on Latest 'Brexit' Poll Results

GBP/USD Reclaims 1.4500 Handle on Latest 'Brexit' Poll Results

18 May 2016, 14:00
Roberto Jacobs

GBP/USD Reclaims 1.4500 Handle on Latest 'Brexit' Poll Results

The GBP/USD pair held on to 1.4400 handle and witnessed a smart recovery to 1.4537 as the latest 'Brexit' poll result showed 'Remain' camp were leading with 55% votes.

Earlier during the day, the pair shrugged off strong-than-expected UK labor market report and dropped to 1.4400 handle. Today's UK jobs report delivered a positive surprise and showed that the number of people claiming unemployment-related benefits during April declined by 2,400 vs the expected rise of 4,000. Meanwhile, the wage growth of 2.0% surpassed even the most optimistic expectations. The unemployment rate held steady at 5.1%.

Ahead of the FOMC minutes due later today during NY session, a dovish shift would be enough to push the pair through 1.4530-40 strong resistance area.

Technical levels to watch

A convincing break through 1.4530-40 strong horizontal resistance would add to the near-term bullish bias and open room for an immediate up-move towards 1.4600 round figure mark.

Meanwhile on the downside, 1.4460-50 horizontal zone should now protect immediate downside. Only a strong signal that the Fed would move towards hiking rate in June might force the pair to break below this immediate support and extend its downward trajectory even below 1.4400 handle, towards testing its next major support near 1.4345-40 region, comprising of 50 and 100-day SMAs.


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