Fundamental Analysis for GBP/USD: June 23, 2016
GBP broke through 1.48 in early European session, peaking at 1.4830 due to two polls that showed the Remain camp leading by several points. This is the sterling’s highest rate against the USD in 2016.
According to YouGov, the Remain camp gathered 51 percent of voters while the Brexit camp recorded 49 percent. ComRes, another major polling firm, revealed similar results with the Bremain leading by 6 percent at 48 percent while the Brexit side was at 42 percent. GBP/USD is now in a consolidating phase as traders remain cautious in the hours leading to the referendum.
In the US, traders are going short on the USD as they wait for the huge impact the referendum’s result could bring. It is understood that the result along with the outcome of Fed’s assessment on a soft labor market will largely affect the interest rate in July.
Dutch bank ING predicted that a Bremain will propel the GBP/USD to the 1.52 level while a Brexit will push it to as low as 1.30.
The first support occurs at 1.4700 and 1.4659 subsequently. The first resistance occurs at 1.4830 and 1.4897. The MACD indicator is in positive location.
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