An early sell-off took GBP/USD pair to 1.4194 before the recovery was set in motion. The bird now trades around 1.4225 levels.
Brexit driven volatility
Swings in Cable are to be expected given the investors are bracing up for a messy outcome of EU referendum scheduled on June 23. Three-month volatility in Sterling hit a six year high last week.
Prices faced rejection earlier today at 50-DMA and fell to a low of 1.4194 levels before recovery was set in motion. However, the move off lows lacked any fresh fundamental trigger.
The volatile nature of Cable may remain intact ahead of Fed’s Yellen speech due later today.
GBP/USD Technical Levels
Acceptance above 50-DMA hurdle of 1.4269 (also 10-DMA), would open doors for a rise to 1.43, beyond which a major hurdle is noted at 1.4330 (23.6% of 1.5930-1.3835). On the other hand, a breakdown of immediate support at 1.4194 (daily low) would expose 1.4175 (50% of 1.3835-1.4515) and 1.4154 (38.2% of 1.4669-1.3835).
(Market News Provided by FXstreet)