GBP/USD: Bullish momentum gathers pace, spikes to session high

The GBP/USD pair bullish momentum has gained traction in the last one-hour, lifting the pair to the high point of the day.

Of late, the British Pound has bucked the broad theme of US Dollar strength on positive sentiment surrounding the EUR referendum on June 23. Most of the latest poll outcomes indicated an overall lead for the 'Remain' camp and has assisted the GBP/USD pair to hold important support levels and scale higher levels. Receding 'Brexit' fears might continue to boost demand for GBP and support the GBP/USD pair's near-term bullish momentum.

Moreover, global risk-on sentiment might force USD bulls to turn cautious at higher levels ahead of next week's, keenly watched US monthly jobs report for the month of May, which would now determine the Fed's monetary policy stance during its meeting in June.

From technical perspective, a decisive break through 2-week highs resistance near 1.4660-65 area, has opened room for further appreciating move for the pair.

Technical outlook

Efthivoulos Grigoriou, Head of Global Research and Analysis at JFD Brokers Ltd. notes, "on the 4-hour chart, GBP/USD is neutral-to-bullish, as the technical indicators hold above their mid-lines, but lack directional strength. The 50-SMA and the 200-SMA are ready to provide a significant support and resistance to the price action near 1.4000 and 1.4500, respectively. With the above in mind, the next level to watch will be the 38.2% Fibonacci level, near 1.4650 but we would expect a test at 1.4400 and maybe to 1.4300 before turning north again. Beyond there would want to take a look at 1.4770, however, it will need a lot of efforts from the bulls to break above there, at least for now."