GBP/USD fails once again near 1.4700, Brexit uncertainty weighs

The GBP/USD pair met fresh supply at daily tops on another attempt to regain 1.47 handle, as markets remain uncertain over the outcome of the EU referendum held tomorrow.

GBP/USD awaits Brexit vote

Currently, GBP/USD now climbs +0.20% to 1.4681, struggling to take-out 1.47 handle. The British pound continues to hold gains against its American counterpart in early Europe, although the upside lacks momentum as investors remain nervous heading into the much awaited UK’s vote on the EU referendum, despite the latest opinion poll outcome favouring the Remain camp.

European head of global markets at Bank of Tokyo-Mitsubishi UFJ (BTMU) Derek Halpenny noted, “The opinion polls that had a clear momentum in favor of ‘Leave’ over recent weeks have indicated a shift with weekend opinion polls showing support has shifted back in favor of ‘Remain’." While the bank sees GBP/USD near $1.3000 level after a one-month period if the 'Leave' vote is successful, and close to $1.5000 on 'Remain'.

Nothing of relevance on the cards this Wednesday, as Brexit related headlines take centrestage.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4700 (round number), above which 1.4757 (daily R1) would be tested. On the flip side, support is seen at 1.4640 (200-DMA) below that at 1.4598 (5-DMA).