GBP/USD jumps to session high ahead of UK GDP print

By FXStreet The GBP/USD pair found fresh bids near 1.4700 handle that boosted the pair back near day’s peak level ahead of the scheduled release of second estimate of UK GDP growth for Q1 2016.

The British Pound remains relative out-performer against the broader US Dollar strength with the recent polls hinting towards increasing support for the ‘Remain’ camp in a crucial vote on EU referendum (‘Brexit’) later during June. Meanwhile, a surprise upward revision for the initial GDP estimates of 0.4% growth for the first quarter would further add to the positive sentiment surrounding the GBP/USD pair.

Even from technical perspective, the pair requires a strong fundamental trigger to build on to its recent gains. Strong-than-expected GDP growth rate would provide the required thrust to extend the pair’s near-term bullish momentum.

Technical levels to watch

From current levels, further bullish momentum is likely to confront immediate resistance near May high level of 1.4770, also nearing to the very 200-day SMA resistance near 1.4780. A decisive break-through the 200-day SMA resistance, the pair seems all set to extend its upward trajectory in the near-term.

On the flip side, failure to conquer 200-day SMA and a subsequent reversal below 1.4700 handle seems to trigger …read more

Source:: FX Street