GBP/USD bounces sharply and erases daily losses

GBP/USD bounced sharply from lows and erased completely intraday losses as markets made a U-turn during the New York session, with the greenback facing selling pressure.

GBP/USD rose more than 200 pips over the last hours from  a low of 1.4011 to a fresh daily peak of 1.4231 in recent dealings. At time of writing, the pair is trading at 1.4220, now 0.13% above its opening price.

Cable was under broad pressure amid mounting Brexit fears and after the BoE warned about consequences of leaving the European Union and subsequent global spillovers. However, the UK referendum campaigns were suspended on Thursday after an UK lawmaker Jo Cox was killed.

GBP/USD technical levels

In terms of technical levels, immediate resistances could be faced at 1.4265 (Jun 14 high) and 1.4347 (100-day SMA). On the flip side, supports are seen at 1.4004/00 (monthly low April/psychological level) and 1.3913 (Mar 2 low).