GBP/USD back on the bids above 1.4700, Brexit looms

The GBP/USD pair finally broke the Asian consolidation box to the upside and reverted towards fresh three-week highs reached above 1.47 handle as risk-sentiment improved further as market remain optimistic over Bremain chances.

GBP/USD regains 1.4700

Currently, GBP/USD now climbs +0.11% to 1.4709, having posted fresh three-week tops at 1.4723 in the last hour. A renewed risk-on wave hit the markets after the Asian equities extended gains and boosted the demand for risky currencies such as the GBP.

Moreover, the European traders hit their desks and appear to cheer the latest Brexit opinion poll results that indicated ‘Remain’ camp still overall winner.

A YouGov poll for the Times newspaper published late on Monday showing “Leave” at 44% and 42% for “Remain,” while a survey by ORB for the Daily Telegraph had “Remain” at 53% and “Leave” at 46%. Lastly, the NatCen poll showed 53% Remain vs. 47% Leave

However, further upmove faces stiff resistance as markets continue to remain cautious over the Brexit headlines. Calendar-wise, we have the public sector net borrowing data lined up for release from the UK docket, while Fed Yellen’s testimony will be also closely watched.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4750 (daily R1), above which 1.4770 (May 3 high) would be tested. On the flip side, support is seen at 1.4642 (200-DMA) below that at 1.4563 (daily S1).