GBP/USD rises above 1.3500

GBP/USD extended its recovery from 31-year lows into a second day Wednesday, climbing to the 1.3500 area at the beginning of the New York session.

Following the steep selloff triggered by the results of UK referendum, GBP/USD has been on recovery mode over the last sessions as the pound takes a breather given that EU negotiations over when and how the UK will leave the union are going to take some time.

GBP/USD reached a 5-day peak of 1.3505 and continues to trade nearby, struggling to consolidate above the 1.3500 psychological level. At time of writing, the pair was at 1.3502, up 1.21% on Wednesday.

GBP/USD levels to watch

In terms of technical levels, above 1.3500 next resistances are seen at 1.3620 (100-hour SMA),  1.3835 (Feb 29 2016 low) and 1.3979 (intraday level Jun 24). On the flip side, supports could be found at 1.3285 (Jun 29 low), 1.3200 (psychological level/Jun 28 low) and 1.3119 (31-year low, Jun 27).