GBP/USD Rallies to Session Peak Level of 1.4637

GBP/USD Rallies to Session Peak Level of 1.4637

30 May 2016, 14:42
Roberto Jacobs
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GBP/USD Rallies to Session Peak Level of 1.4637

Extending its recovery from session low of 1.4588, the GBP/USD pair gained further traction and has now moved to a fresh session high level of 1.4637.

Despite of the recent broad theme of USD strength, sparked by expectations of a Fed rate-hike in June or July, the British Pound has been a relative outperformer as opinion polls have swung more decisively against “Brexit.” 

Last week, the GBP/USD pair rose for second consecutive week and now seems to be headed for a third consecutive month of advances. The pair, however, has failed to extend its bullish momentum beyond 1.4700 handle but seems to find renewed buying interest around 1.4600 handle.

With a slew of top-tier economic releases, including the closely watch NFP data, slated for release from the US this week, and with less than one month left for the crucial EU referendum, the pair seems unlikely to break through its broad trading range between 1.4700-1.4600 handle.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the immediate support comes at 1.4580, the level to break to see the decline extending towards the 1.4520/40 region. Above 1.4630 on the other hand the pair can recover some ground, with the next resistances at 1.4670 and 1.4710."


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