GBP/USD: Upside capped by 1.4700, despite ‘Remain’ favoured

The GBP/USD pair keeps the bid tone intact, although fails several attempts to reclaim 1.47 handle, as the bulls consolidate previous rally to fresh 2016 highs amid pro-Remain latest Brexit poll results.

GBP/USD finds support near 1.4620

Currently, GBP/USD now climbs +0.13% to 1.4673, having faced rejection at 1.4695 levels, daily tops. A cautious tone prevalent in the markets as we remain just a day away from the historical EU referendum, keeps the demand for risk currencies such as the pound largely subdued.

However, the cable manages to remain bid and regains 200-DMA in response to the latest Brexit poll results showing increased favouritism towards the ‘Remain’ camp. Today’s ORB's gave its final poll results, with Remain 54%, Leave 46%, while according to the latest poll by Number Cruncher Politics, we see Remain at  63% and Leave at 37%.

Moreover, Fed Yellen’s cautious stance on the US monetary policy stance at her testimony yesterday continues to weigh on the greenback across the board, providing some support to the bulls.

Looking ahead, the major will be continued to be driven by the broader market sentiment, while Brexit related news flow will be closely monitored ahead of the second round of Yellen’s testimony due later tonight.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4700 (round number), above which 1.4757 (daily R1) would be tested. On the flip side, support is seen at 1.4640 (200-DMA) below that at 1.4598 (5-DMA).