GBP/USD Back to Square One After Steep Drop

GBP/USD Back to Square One After Steep Drop

31 May 2016, 15:07
Roberto Jacobs
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GBP/USD Back to Square One After Steep Drop

GBP/USD bounced back to the 1.4650 zone, erasing intraday losses following strong reversal from 3-day highs to 5-day lows seen during the European session as recent polls have shifted back to suggest less certainty over a “remain” result in EU referendum. 

GBP/USD fell sharply from a peak of 1.4723 all the way to a low of 1.4567, that is over 150 pips, before finding support and climbing back to the flat line. Latest string of US data did little to move the dollar, leaving Cable at 1.4645, a few pips above its opening price.

GBP/USD levels to watch

In terms of technical levels, GBP/USD could find next resistances at 1.4723 (May 31 high), 1.4762/68 (200-day SMA/May 3 high) and 1.4815 (Jan 4 high). On the flip side, supports are seen at 1.4567 (May 31 low), 1.4516 (20-day SMA) and 1.4472 (May 24 low).


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