GBP/USD: more volatility, this time on Yellen, but Brexit heating up

GBP/USD is barely unchanged on Yellen's comments as markets begin to lose faith and start to read between the lines and as the rhetoric becomes more and more vague. 

Yellen has noted how disappointing the jobs report was, but has attempted to restore faith into the US economy and labour market by telling markets that the labour market has been positive while slack has almost been eliminated and that markets should not read too much into one nonfarm payrolls print. Overall, she still expects gradual hikes. She noted Brexit risks and how China faces challenges in re-balancing. In respect to inflation, she suggested that inflation will move to target unless oil resume declines and the dollar strengthens substantially. 

Sterling dives as 'Leave' campaign gains ground

Meanwhile, the Brexit campaign is heating up as we approach the referendum date 23rd June. Sterling has come under immense pressure at the start of this week and volatility is here to stay. We are back up from the bearish gap's extended supply to 1.4351, scoring highs of 1.4471.

GBP/USD levels

We are still somewhat clear of the 2 month uptrend of 1.4254 where below there lurks the 1.4083/05 zone. This is where the January and April lows were scored. To the upside key resistance lies at 1.4515 (March high) ahead of 1.4665 and February high all of which are guarded by 1.4480 and 1.45 the figure.