GBP/USD building on to its gains above 1.4600 handle

Building on to its bullish gap-up, the GBP/USD pair rose to touch a three-week high level of 1.4673 before retracing marginally to currently trade at 1.4630.

The pair surged beyond 1.4600 handle, marking its highest level in over a month, after the latest ‘Brexit’ poll results indicated support leaning towards the 'Remain' camp after last week's killing of pro-EU MP Jo Cox.

Absence of any major economic releases on Monday is unlikely to hinder the ongoing bullish sentiment surrounding the cable. However, should traders be inclined to take some profits off the table, after the pair's sharp up-surge of over 600-pips from Thursday's low, we might witness some pull-back from the vicinity of the very important 200-day SMA region.

Technical outlook

Valeria Bednarik. Chief Analyst at FXStreet notes, "the 4 hours chart for the GBP/USD pair shows that technical indicators keep heading higher, despite being in overbought territory. The pair has a strong static resistance level in the 1.4660 region, which means some short term consolidation could be expected below it, yet renewed buying interest beyond the level, could see the rally extending up to 1.4710. Given that the pair has double the length of its intraday already, further advances seem unlikely for today."

"The immediate support stands at 1.4590, but it will take a break below 1.4550 to see a downward corrective movement towards the 1.4480/1.4500 region."