GBP/USD rebounds to 1.4200, Brexit weighs

GBP/USD’s recovery from near 1.4150 levels gained further traction in the mid-Asian trades, with the bulls now flirting with 1.42 handle amid widespread risk-aversion.

GBP/USD trades way below all major DMAs

Currently, GBP/USD now drops -0.45% to 1.4195, reversing a drop to fresh two-month low struck at 1.4158 pre-Tokyo open. The cable stages a solid comeback from multi-week troughs as dust settles over the weekend’s Brexit poll news, although remains deep in the red amid prevalent risk-off environment, spurred by renewed Brexit fears and increased nervousness ahead of central banks’ events.

The GBP/USD pair plunged nearly 80-pips in thin trade ahead of Tokyo-open, as traders sold-off the pound into looming Brexit concerns in response to the latest Brexit poll showing a huge lead in favour of the Leave camp.

Looking ahead, the focus will continue to remain on the development surrounding the Brexit issue, while the UK CPI figures due tomorrow will be also closely eyed amid a data-dry UK docket today.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4207 (Daily pivot), above which 1.4256/72 (daily S1/ Jun 10 High) would be tested. On the flip side, support is seen at 1.4158 (multi-week low) below that at 1.4130/29 (Apr 15 & 18 Low).