GBP/USD Tracks UK Yields Lower, 1.4500 Tested ahead of UK IP
GBP/USD Tracks UK Yields Lower, 1.4500 Tested ahead of UK IP
The GBP/USD pair failed to keep gains and dropped sharply to 1.45 handle, mainly driven by fresh selling in the UK yields on increased uncertainty surrounding the EU referendum.
GBP/USD fresh bids emerge at 1.4500
Currently, GBP/USD now trades -0.14% lower at 1.4531, quickly bouncing-off a dip to 1.45 barrier. The cable suffered heavily over the last hours after markets sought safety in the UK gilts on mounting uncertainty as we head closer to a Brexit vote on June 23rd. Hence, the benchmark 10-year UK gilt yields plunged to fresh four-month lows of 1.255, down -0.80%.
Moreover, the major also remains weak as yesterday’s volatile session has led traders to remain on the side-lines, with thin market conditions exaggerating the down move.
The immediate focus now remains on the UK industrial and manufacturing production data due out in less than 30 minutes for fresh impetus on the sterling.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4600 (round number), above which 1.4658 (Jun 7 high) would be tested. On the flip side, support is seen at 1.4483 (5-DMA) below that at 1.4468 (50-DMA).
