GBP/USD Drops Back Below 1.4400 Handle, Still Holding 1.4350 Support
The GBP/USD pair is witnessing a volatile session as the pair during Monday opening trade dropped to 1.4352 before staging a sharp recovery to 1.4463 and has now dropped back below 1.4400 handle.
The British Pound opened sharply lower on Monday after the latest poll results that showed increasing lead for the "Leave" camp further fueled 'Brexit' worries and its implication on the UK economy.
Later today, the Fed Chairwoman Janet Yellen would grab all the attention when she speaks on economic outlook and monetary policy in Philadelphia as investors remain skeptic of any further hawkish comment after Friday's awful employment numbers.
From technical perspective, the pair continues to hold 100-day SMA support near 1.4350 region, which if broken would confirm a bearish double-top chart pattern formation on daily chart near 1.4700-20 region and thus, would open room for further near-term depreciating move for the pair.
Valeria Bednarik., Chief Analyst at FXStreet notes, "The 4 hours chart shows that the technical indicators have turned higher within bearish territory, with the RSI bouncing from oversold readings and the Momentum indicator about to cross its 100 level towards the upside, but also that the price is struggling around a bearish 20 SMA, and below the 200 EMA, this last capping the upside around 1.4480. An advance above this last should see the price recovering up to 1.4520/30, whilst beyond this last the pair can advance up to 1.4570, particularly if the dollar comes under strong selling pressure later on the day."
"The immediate support is now at 1.4395 with a break below it pointing for a quick test of the mentioned daily low around 1.4350, whilst below this last the next bearish target comes at 1.4310."