GBP/USD around 1.4800 ahead of referendum

The sterling is sharply higher vs. the greenback at the end of the Asian session on Thursday, with GBP/USD gyrating around the key 1.4800 handle.

GBP/USD retreats from 2016 highs

The pair has returned to the 1.4800 neighbourhood after hitting fresh 2016 highs in the area of 1.4850 on Wednesday, bolstered by hopes of the UK staying part of the European Union at today’s referendum (polling stations opening at 7:00 BST).

In the meantime, the pair keeps its impressive rally well and sound, advancing more than eight cents since last week’s lows in the 1.4000 neighbourhood after poll results showed the ‘Stay’ option remains on the lead.

GBP/USD levels to consider

As of writing the pair is gaining 0.66% at 1.4805 and a break above 1.4845 (2016 high Jun.22) would open the door to 1.4948 (high Dec.25). On the other hand, the immediate support lines up at 1.4671 (200-day sma) followed by 1.4468 (20-day sma) and then 1.4362 (100-day sma).