FXStreet (Orlando) – The British Pound recovered all its previous losses against the US Dollar and after bouncing at the S1 level of 1.5255, the GBP/USD is now trading back at highs above 1.5350.
Earlier in the day, the GBP/USD fell 120 pips from 1.5375 to find support at 1.5255 where the pair experienced a buying interest that sent it back to daily highs around 1.5370. Currently, GBP/USD is trading at 1.5361, up 0.09% on the day, having posted a daily high at 1.5377 and low at 1.5258.
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish.
Brexit? Is the EU referendum in the UK affecting the British Pound?
As reported by Ryan Littlestone from ForexLive, UK lawmakers are discussing the EU referendum in the UK. They said that “referendum will happen sooner if the UK renegotiates what it wants ahead of schedule.”
However, Littlestone affirms that “probably what moved the price was a comment from Hammond saying that as long as there is a Conservative government, we will not, and never will be, part of the single currency.”
GBP/USD Forecast
Yohay Elam from ForexCrunch said in the latest GBP/USD Forecast Poll, “the pound has shown relative resilience and this trend could resume later on.” So the British Pound is rising again. If the pair extends gains beyond 1.5370, resistances will be found at R1 at 1.5400 and then the June 4 high of 1.5440.
To the downside, supports are at daily PP at 1.5310, 1.5300 and today’s low of 1.5255.
(Market News Provided by FXstreet)