GBP/USD gains seen fading above 1.47  - Scotiabank

According to Shaun Osborne, chief FX Strategist at Scotiabank, GBP/USD maintains a short-term bullish tone, although in the longer terms gains are seen fading above 1.4700.

Key Quotes

“Cable tested the mid/upper 1.43 area three times yesterday and looked vulnerable to more losses overall so the overnight transformation, leaving the market knocking on the door of 1.46, looks quite remarkable, considering the only piece of data that has been released is the “Halifax” May house price survey (+0.6%).”

“That is not usually a market mover. With polling showing movement towards the Leave campaign, the GBP is likely to remain choppy near-term, unless investors are willing to look through the surveys and simply trade the probabilities. Cameron/Farage TV appearance starts at 16.00ET. “

“GBPUSD short-term technicals: neutral/bullish—It’s hard not to be bullish in the near-term, given the overnight surge in the GBP. With key support at 1.4335 now some distance away, after being within easy reach at this time yesterday.”

“Cable may be able to challenge key resistance at 1.4720/30. Easy come, easy go comes to mind though and the soft, longer-term undertone to the Cable chart suggests that fading GBP gains above 1.47 is perhaps the best way to approach the choppy trade here for the moment.”