GBP/USD analysis: headed to April's low of 1.3965

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4000

Pound hurt by data and dovish comments from BOE's Carney.
GBP/USD post its largest weekly slide in over two months.

The Pound has been on a selling spiral this past week that only pared with market's close. The GBP/USD pair plunged to 1.4000 where it is ahead of the weekly opening, as UK data released this last few days came well below expected with misses in employment, inflation, and sales figures. Adding fuel to the fire, BOE Governor Mark Carney´s comments on Thursday cooled down expectations of a rate hike next May. The UK has little to offer from the macroeconomic side until next Friday when it will unveil Q1 GDP, seen up 0.4% QoQ and 1.4% YoY.

Technically bearish, the pair has broken below the 61.8% retracement of its early April bullish run and is headed to complete a full retracement to 1.3965. In the daily chart, indicators head south almost vertically after crossing their mid-lines, as the 20 SMA gains downward traction around the mentioned Fibonacci level, reinforcing it as resistance at 1.4120. In the 4 hours chart, the 20 SMA heads sharply lower above the current level, while the pair accelerated south after freaking below its 200 EMA. Technical indicators in the mentioned chart maintain their bearish slopes despite being in oversold levels, in line with additional slides ahead.

Support levels: 1.3965 1.3920 1.3875

Resistance levels: 1.4040 1.4085 1.4120

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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