Short covering lifts GBP/USD beyond 1.4550 level

A sharp short squeeze rally assists the GBP/USD pair to break through the 1.4530-40 resistance and climb higher to 1.4564 as the 'Remain' camp hold their lead in the latest poll results.

The latest outcome of the IPSOS poll showed a big jump in those wanting to stay with the EU. Wednesday happened to be yet another day that saw the GBP/USD pair shrugging-off positive UK economic data while gaining momentum on 'Brexit' poll results. Investors, however, will keep a close watch on tonight's FOMC minutes before taking near-term direction bets on the pair.

Technical Outlook

Mohammed Isah, Technical Strategist at FXTechstrategy notes, "The pair continues to look weak and vulnerable to the downside in the short term despite its recovery attempts on Tuesday. On the downside, support lies at the 1.4400 level where a break will turn attention to the 1.4350 level. Further down, support lies at the 1.4300 level. Below here will set the stage for more weakness towards the 1.4250 level."

"Conversely, resistance stands at the 1.4500 levels with a turn above here allowing more strength to build up towards the 1.4550 level. Further out, resistance resides at the 1.4600 level followed by the 1.4650 level."

"On the whole, GBPUSD is recovering higher but with caution."