GBP/USD: data, Carney spook Pound's bulls

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4052

GBP/USD broke major support, now resistance around 1.4120.
BOE's May rate hike at doubt after Carney's speech.

The Pound continues shedding ground and approaching the 1.4000 figure against the greenback, as not first-tier UK data came below expected this week, but BOE's Governor Carney dampened expectations for a May rate hike in a speech this Thursday. Carney remarked that an interest rate hike is not yet a done deal, as Brexit uncertainty could delay the decision. He added that data is mixed, and they will need to "sit down calmly and look at it all in the round." Odds for a rate hike have decreased sharply afterward, adding pressure to the vulnerable Sterling.

There were no relevant macroeconomic releases in the EU and the UK, while the US will only offer a couple of Fed's speakers. Yields, which rose globally and are the main reason for dollar's strength, will remain the main market motor during the last session of the week.

The GBP/USD pair has broken below the 61.8% retracement of its latest bullish run late Thursday, settling also below the 200 EMA in the 4 hours chart, having remained below this last ever since, usually a sign of continued directional strength in the way of the break. In the mentioned chart, the 20 SMA has accelerated south well above the current level, while technical indicators are resuming their declines after a short-lived consolidative stage in oversold territory, all of which supports lower lows ahead for the pair.

Support levels: 1.4005 1.3970 1.3925

Resistance levels: 1.4080 1.4120 1.4160

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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