GBP/USD - 1.3985.. Although cable caught a bid in Asia Wed n ratcheted higher fm 1.4077 to 1.4132 at NY open on cross buying in sterling, price later tumbled to a 5-week low of 1.3983 after Fed's hawkish tilt, then 1.3972 today.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb suggests a major low is made. Last week's marginal gain to a 3-year peak of 1.4250 signals said upmove has resumed n as long as 1.4006 holds, price would head to 1.4308, 'bearish divergences' on daily indicators would cap cable below 1.4500. Wed's daily close below 1.4006 signals top has been made n retracement to 1.3801, possibly twd 1.3670 would be seen.

Today, cable's intra-day marginal weakness to 1.3972 would pressure price to 1.3940 after consolidation, however, o/sold readings on hourly oscillators may keep sterling abv 1.3892. On the upside, only a daily close abv 1.4035 dampens bearishness n may risk 1.4069/71 but 1.4132 should hold.

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