GBP/USD rejected near 1.4300, drops to test 5-DMA

The bid tone surrounding the GBP weakened post-Tokyo, sending GBP/USD gradually lower towards 5-DMA located at 1.4227 as dust settles over the BOE and Brexit suspension news.

GBP/USD capped below 1.4300

Currently, GBP/USD now trades +0.25% higher at 1.4240, having posted fresh session lows at 1.4232 last hour. The cable reversed course and dropped during the latter part of the Asian trades as markets took profits off the table after the major ran into the resistance located at 1.4300.

Moreover, renewed weakness seen in the Asian equities spurred a fresh risk-aversion wave and hit the higher-yielding currencies such as the sterling. Also, markets moved past the news of the suspension of Brexit campaign as focus now shifts towards next Thursday’s EU referendum, which fuels nervousness into the markets.

Amid a data-dry GBP calendar today, focus remains on the US housing data for fresh cues on the USD moves.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4295/1.4300 (daily high/ round number), above which 1.4348 (100-DMA) would be tested. On the flip side, support is seen at 1.4200 (round figure) below that at 1.4181/76 (1h 50 & 100-SMA).