GBP/USD: volatility here to stay between 200 and 100 dma at 1.4730 and 1.4351?

GBP/USD is a grind to the downside from 1.4659 short-lived highs made in Asia where price fell back to demand at 1.4490/00 recovering to 1.4600 on persistent volatility where supply took control.

Brexit dominates the headlines and Sterling volatility is picking up as we head towards the EU referendum on the 23rd June. Odds are at evens pretty much with the leave campaign recently coming into line and leading at times from one poll to another, pressuring the pound while thin markets in Asia will be prone to extra volatility in thinner trade. Meanwhile, the dollar is on the back-foot on fed related set-backs and markets out pricing 2016 rate hikes. From the UK, we await this week's release of manufacturing and industrial production figures for April.

GBP/USD levels

We were close to the 1.4665 (February high), where the rally halted ahead of the 200 dma target of 1.4730 and marks a strong area of resistance on further upside surprises in what is otherwise a bearish picture from the May sell off at 1.4735 within a daily bullish pattern on the break of the 17th March descending resistance. The 100 dma at 1.4351 comes as a key support to the downside having caught the supply on 12th, 15th May and 5th June.