GBP/USD eases from session high to trade at 1.4725

The GBP/USD pair continues to gain traction as the latest poll results added to the bullish sentiment and calming fears of a possible 'Brexit'.

Although the final outcome will be known on Friday, market already seems to price-in a win for the 'Remain' campaign. However, judging from the recent trend, a sudden turnaround in the sentiment could cause a knee-jerk reaction, sending the pair tumbling lower. 

Nevertheless, the pair continued to scale higher and moved to the proximity of 1.4800 handle before retracing few pips to currently trade at 1.4735. Moreover, the pair is now comfortably trading above 200-day SMA for the first time since Nov. 2015 and at session high was just a whisker away from 2016 high level of 1.4816.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "In the 4 hour chart, the 20 SMA is crossing above the 200 EMA, but both are over 350 pips below the current level, favoring the upside, but also indicating the strength of the latest advance."

"In the same chart, the technical indicators have resumed their advances within overbought territory, supporting a continued advance up to the mentioned year high. A break beyond it could see the pair extending its rally up to 1.4840/60, en route to 1.4920, a strong static resistance level."

"Below 1.4715 the pair may correct lower, down to the 1.4660 region, and even lower, down to 1.4600 on some negative referendum news."