GBP/USD approaches 1.43 as dollar drops

A continuation of the selling bias around the greenback is now allowing GBP/USD to test the vicinity of the 1.4300 handle.

GBP/USD still vulnerable ahead of referendum

The pair managed to rebound from yesterday’s deep retracement to the 1.4000 neighbourhood amidst concerns of a ‘Brexit’ scenario and increasing buying interest surrounding the dollar.

However, the demand for USD remains weak on Friday following rumours of a probable coordinated action by the main central banks in order to pump USD funding in case ‘Brexit’ materializes.

In addition, GBP remains somewhat underpinned after both the ‘Leave’ and ‘Stay’ campaigns have been suspended after Labour MP Jo Cox was shot dead.

GBP/USD levels to consider

As of writing the pair is gaining 0.43% at 1.4299 and a break above 1.4353 (100-day sma) would open the door to 1.4412 (55-day sma) and finally 1.4449 (20-day sma). On the other hand, the immediate support lines up at 1.4013 (low Jun.16) followed by 1.4004 (low Apr.6) and then 1.3833 (2016 low Feb.2).