GBP/USD Better Bid in Asia on Weaker USD, Latest Brexit Poll

GBP/USD Better Bid in Asia on Weaker USD, Latest Brexit Poll

7 June 2016, 05:17
Roberto Jacobs
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GBP/USD Better Bid in Asia on Weaker USD, Latest Brexit Poll

The GBP/USD pair maintains the bid tone in the Asian session, now consolidating a solid comeback staged in the previous session in response to Yellen’s not so hawkish tone.

GBP/USD trades above 5-DMA at 1.4450

Currently, GBP/USD now trades 0.11% to 1.4462, looking to take-out key resistance above 1.4475 levels. The cable is seen making lower tops on the daily charts, although clinches previous gains as a broadly muted US dollar and the latest YuoGov Brexit polls offered fresh support to the pound.

The latest Times YouGov polls on the EU referendum published overnight by revealed that ‘Remain’ cap took a one point lead. Remain stood at 43% compared to 41% last month, while Leave came in at 42% compared to 41% on May 31.

While the greenback sank further against its major peers after Fed Yellen skirted around a summer rate hike, although kept its upbeat tone on the US economic outlook intact. The USD index plunged to 93.74, the lowest levels in almost four weeks, before recovering some ground to now regain 94 handle.

Next in focus for the major remains the UK Halifax HPI data amid a lack of relevant macro news from the UK docket, while the US economic calendar also remains fairly light, with a couple of second liner data due on the cards.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4500/03 (round number/ 10-DMA), above which 1.4529/41 (20-DMA/ 1h 200-SMA) would be tested. On the flip side, support is seen at ) 1.4400 (Round number) below that at 1.4364 (100-DMA).


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