GBP/USD analysis: trims daily gains, at risk of breaking key 1.4000

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4034

GBP/USD completed a pullback to a broken trend line before turning south.
UK Markit PMIs on manufacturing, construction, and services to be out this week.

The British Pound started the day with a positive tone, with the GBP/USD pair advancing p to 1.4077, although it then retreated to end the day in the 1.4030 region, little changed from Friday's close. There were no news coming from the UK, resulting in the USD leading the way for the pair. Later this week, however, the kingdom will see the release of the Markit PMIs, on manufacturing, services, and construction. Worse-than-expected results will be enough to send the pair below the critical 1.4000 figure. From a technical point of view, the 4 hours chart shows that the pair pulled back to the daily descendant trend line broken last week, meeting selling interest near it and also around a bearish 20 SMA, a sign of bulls being not actually convinced. Technical indicators in the mentioned chart have corrected higher from oversold readings before losing upward strength and turning lower, the Momentum right below its 100 level, but the RSI around 38. An immediate support comes at 1.4010, with a more relevant one at 1.3985, as once below this last, the downward move will likely gain momentum.

Support levels: 1.4010 1.3985 1.3940

Resistance levels: 1.4040 1.4085 1.4125

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.

EUR/USD trims losses, flirts with the 1.1850 zone

EUR/USD is back on the back foot on Wednesday, slipping below the 1.1850 area as the US Dollar picks up some modest traction. The move comes as traders position ahead of a busy run of US data and the release of the FOMC Minutes. Adding to the pullback are reports that the ECB’s Lagarde may step down before completing her term.

GBP/USD flirts with daily highs near 1.3580

GBP/USD manages to set aside two consecutive daily declines and trades with slight gains in the 1.3580 zone on Wednesday. Cable’s uptick comes despite acceptable gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.