GBP/USD consolidates the vertical rise above 200-DMA

The GBP/USD pair is seen correcting a small portion of yesterday’s massive rally backed by Brexit polls showing a shift of votes in favour of the ‘Remain’ camp.

GBP/USD back below 1.4700

Currently, GBP/USD now loses -0.21% and trades around 1.4660, having found support at 100-DMA. The cable came under pressure this Tuesday as markets sought to take profits off the table after the rate once again failed to resist 1.47 barrier.

However, the key catalyst behind the retreat in the major from three-week tops is the conflicting latest Brexit polls published late-Monday. A YouGov poll for the Times newspaper published late on Monday showing “Leave” at 44% and 42% for “Remain,” while a survey by ORB for the Daily Telegraph had “Remain” at 53% and “Leave” at 46%. Lastly, the NatCen poll showed 53% Remain vs. 47% Leave

Going forward, the Brexit headlines will continue to hog the limelight, while traders will also take cues from the UK public sector net borrowing data ahead of Fed Yellen’s testimony scheduled later today.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4700/19 (round number/ 3-week highs), above which 1.4750 (daily R1) would be tested. On the flip side, support is seen at 1.4642 (200-DMA) below that at 1.4563 (daily S1).