GBP/USD analysis: gaining bearish traction sub-1.4000

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4003

UK macroeconomic calendar to remain scarce until Wednesday.
Dollar benefits from lower equities worldwide, limited volumes prevent Pound from plummeting.

The GBP/USD pair pierced the 1.4000 threshold for the first time since last Wednesday, falling as low as 1.3958 before settling around the figure. The greenback benefited by the softer tone of equities, with European indexes and US futures trading down by London's close. In the data front, the UK released the February Rightmove House Price Index, up 1.5% yearly basis and by 0.8% when compared to January. The report also showed that the average price of a UK property coming on to the market has risen above £300,000 amid evidence of “record” levels of house-hunting activity. Tuesday will see the release of the CBI Industrial Trends Survey-Orders for February, but more relevant news will come on Wednesday, with the monthly employment report. In the meantime, the pair trades with a modest bearish bias, despite its latest bounce, as the pair is below its 20 SMA and the 50% retracement of its latest decline, while technical indicators hover directionless right below their mid-lines. The daily low was set at the 38.2% retracement of the mentioned decline, making of the level a key support, with a break below it opening doors for a steady decline for this Tuesday.

Support levels: 1.3960 1.3920 1.3880

Resistance levels: 1.4025 1.4050 1.4085

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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