GBP/USD fades a spike to 1.4527, prints fresh session low

As the European session got underway, the GBP/USD pair witnessed a sudden up-surge to 1.4527 before fading back to currently trade back around 1.4500 handle. 

The pair on Wednesday witnessed a sudden reversal, erasing all of its gains to 1.4600 level and turned sharply lower to 1.4500 handle. The fall occurred despite of surprisingly strong manufacturing and industrial production data for the month of April as 'Brexit' worries continued to weigh on investor sentiment.

Investors now look forward to today's UK trade balance data along with the US weekly jobless claims data for immediate trading moves, while increasing uncertainty surrounding the UK-EU referendum might continue to keep the GBP/USD pair suppressed in the near-term.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "The GBP/USD pair 4 hours chart shows that the price is now a handful of pips above a horizontal 20 SMA, around 1.4500, and the 200 EMA in the 1.4480, whilst the technical indicators have turned sharply lower, and the RSI indicator is about to cross below its 50 level, supporting some additional declines on a break below the mentioned EMA."

"Support levels: 1.4480 1.4435 1.4390
Resistance levels: 1.4530 1.4560 1.4605"