GBP/USD bullish momentum gains traction, taps 1.4300 level

A follow through buying interest, after Thursday's sharp reversal from 1.4000 neighborhood, assisted the GBP/USD pair to extend its recovery to a four-day high level and tap 1.4300 handle.

Currently trading at 1.4290, the pair has recovered nearly 300-pips from Thursday's low level but is seen struggling to sustain its strength above 1.4300 level. 

On Thursday, the pair rebounded sharply following the killing of Jo Cox, a pro-EU leader, as market participants now expect that the incidence could shore-up support for the 'remain' camp at next week's referendum vote.

With uncertainty surrounding 'Brexit' still a key overhang, traders now await for the release of US market data to grab some short-term trading moves.

Technical levels to watch

From current levels, even if the pair manages to sustain its strength above 1.4300 handle, any further up-move might continue to be restricted at 100-day SMA strong resistance around 1.4350 region. Only a decisive break through 100-day SMA strong resistance would negate prospects of any near-term downfall and open room for further appreciating move for the pair.

On the downside, weakness below 1.4250 immediate support is likely to get extended towards 1.4200 round figure mark, below which the pair would confirm resumption of its prior weakening trend and would remain vulnerable to drop back towards retesting 1.4000 psychological mark support, with 1.4115-10 area (nearing 1.4100 round figure mark) acting as intermediate support.