GBP/USD continues to trade on a heavy demand tone, testing the 1.47 handle after a NY close at 1.4630, with the latest latest ORB poll (phone-type) on Brexit, showing a stay in 51%, get out 46%, being the main driver of the Sterling at present.
Bremain has upper hand based on recent polls
The aggressive move seen in the Pound has become a common pattern every time a poll comes out, with market participants engaging in heavy demand for the Pound recently, as the outcomes of these polls seem to suggest that the Bremain campaign is gaining further support.
Valeria Bednarik, Chief Analyst at FXStreet, notes: The retracement down from 1.4739 could have met an interim bottom in the short term, as there are no technical signs that the decline may extend further. Daily basis, the technical indicators have turned back higher after a modest downward correction, whilst the price keeps developing above a mild bullish 20 SMA.
Shorter term, Valeriia adds: the 1 hour chart shows that the price keeps advancing above its 20 SMA whilst the technical indicators lack directional strength above their mid-lines, while in the 4 hours chart, indicators have recovered their bullish slopes, but remain within negative territory. The pair needs now to extend its gains beyond the 1.4650/60 price zone to be able to continue advancing, with scope to retest the 1.4770 level.