GBP/USD eases to 1.4880/90 band, still trading at 2016 highs

Sterling bulls seems to take a breather with the GBP/USD pair now trimming around 60-70-pips from session high to currently trade around 1.4880/90 band.

Despite of the minor retracement, the pair is trading at 2016 highs and comfortably above 1.4800 handle at its highest level since Dec. 2015. 

During the opening hours of European trading session, the pair kept gaining traction and jumped close to 1.4950 level on growing optimism that voters will favor to remain a member of the European Union.

Investors will now look forward to some exit polls being after the polls are over, ahead of the official results announcement, which is expected to hit the wired during early UK time on Friday, around 04:00 GMT.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the pair is actually overbought in the short term, as the RSI indicator holds around 73, but maintaining its bullish slope, in the 4 hours chart, whilst the Momentum indicator has bounced from its 100 level, both rather reflecting the ongoing demand than suggesting some further advances."

"Markets are all about sentiment, and the pair can keep rallying up to the 1.5000 level during this Thursday yet the most it rallies today, the less will do after the final result, if this last is positive. A negative outcome will be a bad hit to digest and result in the pair plummeting towards 1.4500 and below."