GBP/USD analysis: selling interest strong around 1.4000

GBP/USD Current price: 1.3973

  • Escalating tensions between the UK and Russia undermined the Pound.
  • USD hit by poor local data which sent yields and equities lower.

The GBP/USD pair was unable to regain the 1.4000 level after another attempt this Wednesday, following the release of soft US Retail Sales figures. The greenback, however, enjoyed some temporal demand afterward, but gains were limited due to the softer tone of equities and yields. The Pound was particularly pressured by an international incident going on between the UK and Russia after a former spy was poisoned in the kingdom with a nerve agent. The UK expelled 23 Russian diplomats today after the communist country failed to give PM May the required explanations on the matter. Furthermore, the UK plans to "freeze Russian state assets wherever they have evidence of a threat." There won't be macroeconomic releases in the UK this Thursday. Technically, the 4 hours chart shows that the pair remains in the upper half of the ascendant channel coming from early March, also above a bullish 20 SMA, in the mentioned time frame, while technical indicators hover within positive territory, with no clear directional strength. The mentioned 20 SMA stands around 1.3910/20 providing an immediate dynamic support, for the upcoming sessions.

Support levels: 1.3960 1.3915 1.3880

Resistance levels: 1.4000 1.4040 1.4085

View Live Chart for the GBP/USD

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