GBP/USD: a sell here as Brexit tensions mount?

GBP/USD is currently trading at 1.4454 with a high of 1.4462 and a low of 1.4452.

Understandably, a great deal of attention is focused on the UK economy with the pending EU referendum next month and the market volatility has started to pick up, also through the sterling crosses, with a spike in GBP/JPY yesterday and EUR/GBP. For overnight trade, GBP/USD has come off and is on for a reversal of the 1.4331 rally that penetrated up through the sma's on the 4hr sticks until reaching a high of 1.4522.

"Downside momentum in GBP has faded, but even absent Brexit risk reasons to own GBP are few and far between, soft April inflation data adding to the recent run of weaker data that includes a range of PMIs, IP, construction and house price data. GBP a sell here (1.4450)," added analysts at Westpac.

GBP/USD levels

While the tone is mounting towards sterling weakness, the pair is still a live bid until 1.4330, according to analysts at Commerzbank, where the 55 day ma is located. "The charts picture starts to deteriorate at the 55 day ma to leave the 1.4180 2 month uptrend exposed. Below the 2 month support line lies1.4083/05 area where the January and April lows were made."