GBP/USD analysis: decline doesn't seem to find a bottom

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3939

Pound still suffering from BOE Carey´s dovish comments last week.
US strength backed by soaring yields, on solid data and quieter political background.

After holding around 1.4000 for the first half of the day, Pound bulls finally gave up and the GBP/USD pair plunged to a fresh April low of 1.3925, stabilizing afterward a few pips above the level. The Pound came under pressure last week, as poor UK data coupled with comments from BOE's Governor Carney, who said that Brexit uncertainty could affect the pace of rate hikes in the UK. The kingdom will publish some minor figures this Tuesday, including Public Sector Net Borrowing for March and the CBI Orders Industrial Trend Survey for April, not a game changer at this point. So far, there are no news on the Brexit negotiations' front, although some interesting headlines may be out these days. The 4 hours chart shows that a bearish 20 SMA is crossing below the 200 EMA with a strongly vertical slope, while technical indicators consolidate within oversold levels, with no signs of changing course and favoring additional slides ahead. The 1.3910/20 region is the next static support, as the index has multiple intraday highs and lows around the level, with a break below the level favoring a steeper decline toward the 1.3800 region.

Support levels: 1.3915 1.3875 1.3830

Resistance levels: 1.3965 1.4000 1.4040

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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