GBP/USD drops sharply to session low level of 1.4555

As the European session gets underway, the GBP/USD pair turned volatile, initially spiking to day's peak level of 1.4613 and then fading the spike to drop sharply to a fresh session through level of 1.4555.

‘Brexit’ uncertainty remains near-term fundamental overhang over the pair, which now seems to force traders to restraint from carrying big bets over the weekend.

Moreover, the pair had been struggling to built on to its momentum above 1.4600 handle warranting some profit taking move.

However, despite of today’s minor profit-taking dip, the pair is still headed towards registering over 1% of gains for the week.

Technical levels to watch

From current levels, yesterday’s low near 1.4560-50 area might protect immediate downside and even a follow through weakness below this immediate support is likely to be restrained by 20-day SMA support near 1.4520-10 region.

On the upside, the pair need to build on to its momentum back above 1.4600 handle in order to make a fresh attempt towards testing April daily closing highs resistance near 1.4670.