GBP/USD holds 1.4600 support amid subdued trading action

As the European trading session got underway, the GBP/USD pair turned a bit volatile and dropped to 1.4600 handle, erasing its Asian session gains to 1.4630, just to recover back to currently trade near 1.4620.

In the past few weeks, receding 'Brexit' fears has been acting as a key supportive pillar for the GBP/USD pair's up-move, which seems to be fully priced-in around 1.4700 handle. Hence, market participants now seem to wait for a strong fundamental trigger to boost the pair further beyond 1.4700 handle. Having said that, every dip towards 1.4600 handle seems to get bought into, thus setting a near-term range for the pair. 

Meanwhile, holiday in the US and the UK markets is likely to curtail liquidity and keep trading activity around the GBP/USD pair subdued for the day. However, the pair is likely to take cues from the risk sentiment surrounding in the European stock markets.

Technical levels to watch

From current levels 1.4600-1.4580 remains immediate support to watch for, below which the pair could slide further to 1.4535 intermediate support and eventually to 20-day SMA support near 1.4520-15 area.

On the upside, 1.4635-40 now seems to act as immediate resistance, which if conquered is likely to extend the up-move towards 1.4700 handle resistance. A convincing strength above 1.4700 handle should now assist the pair to extend its bullish momentum towards the very important 200-day SMA resistance near 1.4775-70 region, also coinciding with the multi-month highs touched in early May.