GBP/USD: upward momentum still strong - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair kept rallying on Wednesday.

Key Quotes:

"... reaching a fresh 3-week high of 1.4728. The Sterling was underpinned by increasing evidence that the "remain" vote will likely end up winning the UK referendum."

"There were no relevant news in the UK, although this Thursday, the kingdom will release the second estimate of the Q1 GDP, initially estimated at 0.4%."

"In general, market is expecting a soft reading, in line with the macroeconomic figures released lately, which means that a reading of 0.4% or higher can support further Pound advances."

"Ahead of the Asian opening, the pair settled above the 1.4700, with a short-lived retracement in the US afternoon having met buying interest around 1.4685."

"In the 4 hours chart, the upward momentum is still strong, although the RSI indicator has turned flat around 70. Nevertheless, and with the pair having broken above the daily descendant trend line coming from early May high, the pair seems ready to extend its gains up to 1.4770 initially, with scope to extend up to 1.4920 should the mentioned resistance give up."