GBP/USD reverses a bizarre spike, back to test 1.4500

The sellers quickly took control following an expected spike in the GBP/USD pair beyond 1.4658 levels, and drove the prices back towards 1.45 handle, where it now wavers.

GBP/USD: Selling opportunity on renewed Brexit woes

Currently, GBP/USD now trades 0.51% higher at 1.4514, looking to revert to 1.4470 levels seen earlier today. The cable experienced volatile trade in the Asian session this Tuesday after it was speculated that a wrong big figure was entered on the order, presumably by a fat finger as reported in our previous updates.

Markets took the advantage of this erroneous bizarre spike in the pound against the US dollar and slammed the pound heavily as the Brexit concerns resurfaced lately on shift of votes in favour of the Leave camp.

However, the GBP/USD pair finds some support ahead of 1.45 handle and consolidates over the last hours, as the bulls cheer the latest Times YouGov polls on the EU referendum published overnight, which revealed that ‘Remain’ cap took a one point lead.

Looking ahead, in absence of first-liner economic releases today, the major looks forward to the UK Halifax HPI data for fresh incentives.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4600 (round number), above which 1.4658 (Daily high) would be tested. On the flip side, support is seen at 1.4400 (Round number) below that at 1.4364 (100-DMA).