GBP/USD (current price: 1.4475)
The Great British Pound experienced a strong bearish reversal on Tuesday as two new polls predicted a very tight result on June’s Brexit vote. Traders are getting nervous about the looming referendum that has the potential to push the British economy into recession and the Pound into freefall. Cable got below 1.45 yesterday after trading as high as 1.4730 last week. Further volatility expected in the Pound related pairs in June, as investors will put more and more weight on new polls.
Our assessment: The pair got hit hard on Tuesday and the re-test of the strong support zone near 1.4385 seems likely now, as the negative sentiment will probably weigh on the pound in the coming sessions.
