GBP/USD: Bears Gaurding 1.4400 Barrier. Brexit Fears Weigh

GBP/USD: Bears Gaurding 1.4400 Barrier. Brexit Fears Weigh

6 June 2016, 06:52
Roberto Jacobs
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GBP/USD: Bears Gaurding 1.4400 Barrier. Brexit Fears Weigh

The GBP/USD pair is seen making another recovery attempt to reclaim 1.44 handle, after having dived over 1% in Asia opening trades in response to renewed Brexit fears following latest two polls. 

GBP/USD bounces-off lows just below 100-DMA (1.4362)

Currently, GBP/USD sinks -0.88% to 1.4394, with the recovery having faltered at 1.4410 earlier on the day. The cable is trying hard to fill the bearish opening gap induced by resurgence of Brexit concerns once again in the markets after the latest polls showed Leave camp taking the lead ahead of the EU Referendum vote on June 23th.

Over the weekend, Observer/Opinium poll revealed the 'leave' side took a 'Lead' at 43% vs 40% for 'Remain'. Today’s ITV polls showed 45% leave, 41% remain, while TNS showed 43% leave, 41% remain.

Moreover, broad based US dollar rebound after Friday’s NFP-backed slide, also collaborated to the downbeat sentiment around the GBP/USD pair. Looking ahead, in absence of no macro news from the UK docket, attention now shifts towards the US LMCI data ahead of Yellen’ remarks due later in the NA session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4407/27 (Daily pivot/ 5-DMA), above which 1.4448/50 (50-DMA/ psychological levels) would be tested. On the flip side, support is seen at 1.4362/53 (100-DMA/ Daily low) below that at 1.4300 (Round number).

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