GBP/USD closes the week higher, all eyes on referendum

GBP/USD stretched higher during the final hours of the day and managed to close the week in positive ground ahead of the crucial referendum on EU membership next week.

GBP/USD recovered from a 2-month low scored yesterday after referendum campaigning was suspended on the back of the fatal attack to Jo Cox, a pro-EU UK lawmaker. Cable rose more than 350 pips, reversing weekly losses.

On Friday, GBP/USD finally broke decisively above 1.4300 and accelerated toward a 1-week peak of 1.4386. It was last trading around 1.4350, up % on the day and % higher for the week.

GBP/USD technical levels

In terms of technical levels, immediate resistances could be faced at 1.4400 (psychological level), 1.4435 (50-day SMA) and 1.4472 (Jun 10 high). On the flip side, supports are seen at 1.4011 (Jun  16 low), 1.4004/00 (monthly low April/psychological level) and 1.3913 (Mar 2 low).