GBP/USD slides sharply below 1.4700 after IG Survation Brexit poll

The GBP/USD pair erased all of its gains and dropped below 1.4700 handle following the release of latest IG Survation Brexit poll.

The latest IG Survation Brexit poll showed gap between stay and remain camp narrowing with 44% supporting the 'Leave' camp while 45% willing to remain with the EU. Immediately after the release the pair dropped to 1.4676 before stabilizing around 1.4700 level, a tad below 200-day SMA. 

Earlier during the day, the pair spiked to the proximity of 1.4800 handle, within striking distance of 2016 highs, before profit-taking kicked in, which dragged the pair back below the mid-point of 1.4700-1.4800 handle. 

Going forward the pair might continue to react with extreme volatility to news / developments surrounding Thursday's crucial UK-EU referendum.

In the meantime, traders will take short-term cues from today's Fed Chair Janet Yellen's testimony on the Semiannual Monetary Policy Report before the Senate Banking Committee, later during NY session.

Technical levels to watch

In order to confirm a follow through bullish momentum, the pair needs to sustain its strength above May high resistance around 1.4740-60 region, above which the pair seems all set to scale new heights and head towards retesting Jan. 2016 highs resistance near 1.4820 area before darting towards its next major resistance around 1.4900 round figure mark.

On the flip side, sustained weakness back below 1.4700 handle seems to drag the pair towards 1.4640 session lows support, before heading back below 1.4600 handle to test 1.4540-35 support area.