GBP/USD gaps over 100 pips higher in early and thin Asia trade

GBP/USD has started out on a strong foot on broad dollar strength across the board. 

GBP/USD was ending the week strong on the back of the news that Cameron was postponing the campaign due to the death of MP Jo Cox. The price went from 1.4011 up to 1.4386 at the end of trade last week and has opened in a bullish gap to a high of 1.4478 today.

This is the week that we have the EU referendum and while we are in thin liquidity for the start of Asia trade where price changes can fast and wild, the week ahead is stacking up to be a roller coaster in respect to events scheduled in and around the 23rd June referendum.  A clear victory should have results out by 4am GMT on the 24th, but a close call could keep markets jittery right into the European shift. The latest polls on the weekend have shown through BMG Research with their final EU Referendum poll 46% remain vs 43% leave.

GBP/USD levels

On a resumption of the downside, 1.4200 is a psychological level to break  ahead of the 1.4014/05 area where the recent and April lows were made and these are guarding the 1.3837 February low. To the upside, the price is testing 1.4480 resistance that could prove to be a tough area to break, but on a continuation of the upside, 1.4500 and 1.4610 are key levels ahead of 30th May highs of 1.4723.