GBP/USD recovers to 1.4180, bearish bias remains on looming Brexit

For the time being, the GBP/USD pair seems to have found some support around 1.4120-15 session low level and has recovered to move back above 1.4150 level.

The British Pound continues to react with extreme volatility to the outcome of various polls on 'Brexit' referendum, which remains the key sentiment driver and the biggest macro fundamental overhang for the British Pound until June 23. The latest poll results revealed lead for voters supporting the 'Leave' camp, driving the GBP/USD major down for fourth consecutive day.

Meanwhile, investors will also remain focused on a slew of economic releases / events, including the much awaited FOMC meeting outcome on Wednesday, which could further determine the risk-on/off sentiment and drive the pair in the near-term.

From a technical perspective, break below 1.4350 important support confirmed a bearish Double-Top chart pattern on daily chart thus, making the pair vulnerable to further downside in the near-term

Technical outlook

Pointing to the ongoing bearish sentiment surrounding the GBP/USD pair, Valeria Bednarik, Chief Analyst at FXStreet writes, "the GBP/USD pair shows that the price keeps pressuring its lows, whilst the technical indicators maintain strong bearish slopes, despite being in extreme oversold territory. The decline has been so sharp over the last three trading days, that the 20 SMA is now almost 300 pips above the current level, indicating the strength of selling interest."

Further, she notes. "The movement is way overextended, but there are no signs that the pair may change bias. Should it break below 1.4100, the decline can extend down to 1.4060 first, and 1.4020 later on the day. The immediate resistance on the other hand, comes at 1.4155, with a recovery above it probably favoring an upward corrective movement up to 1.4200. Selling interest is expected to resurge around this last."

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