GBP/USD Firm Around 1.4600

GBP/USD Firm Around 1.4600

24 May 2016, 17:17
Roberto Jacobs

GBP/USD Firm Around 1.4600

The sterling keeps its buoyancy intact today, with GBP/USD gyrating around the 1.4600 handle as European markets are drawing to a close.

GBP/USD boosted by BoE, ‘Bremain’

The pair has reverted two consecutive sessions with losses, managing at the same time to retake the critical barrier at 1.4600 the figure.

Today’s abrupt upside has come in response to the likeliness of a ‘Bremain’ scenario in the UK referendum, according to the latest poll by ORB International, with 55% favouring the ‘Stay’ vote.

Further buying interest followed after the BoE’s Inflation Report, where Governor Carney suggested the next move in rates would likely be up if the UK stays as a member of the EU.

GBP/USD levels to consider

As of writing the pair is advancing 0.77% at 1.4616 facing the immediate hurdle at 1.4666 (high May 19) ahead of 1.4770 (high May 3) and then 1.4815 (2016 high Jan.4). On the other hand, a breakdown of 1.4365 (20-day sma) would aim for 1.4335 (100-day sma) and finally 1.4330 (low May 16).


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