GBP/USD moves into consolidation of 2-week highs

GBP/USD has been bid on the back of the EU referendum polls this week showing that the remain camp are leading.

However, supply has met the bull's advances at 1.4662 and the price lost the 1.46 handle to reach low of 1.4571 before moving into consolidation between there and 1.4635. Data in the UK showed that Retail Sales surprised markets with a 1.3% m/m and 4.3% y/y. The dollar got a lift this week on the back of the hawkish FOMC minutes, but markets are looking again and realise that there are still a lot of ifs and buts and indeed the minutes mirror much of last year's terminology where the Fed wasn't actually in a position to hike until the last month of the year and indeed we are still very much data dependent. Today, the US data offered the weekly unemployment claims that came in at 278K and above expectations, however, below previous of 294K.

GBP/USD levels

Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart, the technical indicators are turning lower from extreme overbought territory, but the price is far above a still bullish 20 SMA. "In the 4 hours chart, the technical indicators are also turning slightly lower from extreme overbought levels, but the price remains well above the 38.2% retracement of the latest bullish run at 1.4525, the level to break to consider a downward continuation."