GBP/USD Forecast: Poised to pierce the psychological 1.4000 threshold

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4059

UK data beat expectations, reflecting economic progress at the end of Q1.
The resurgent dollar’s demand sent GBP/USD over 100 pips lower.
GBP/USD is poised to extend its decline in the near-term.

The GBP/USD pair fell on the back of the resurgent dollar’s demand, ending the day in the 1.4060 price zone. Market players ignored encouraging UK data, as the country reported generally better-than-anticipated figures. The Q1 Gross Domestic Product came in at -1.5%, while the March monthly GDP printed at 2.1%. In the same month, Industrial Production rose by 3.6% YoY, while Manufacturing Production was up by 4.8% YoY.

The positive headlines were no surprise amid the impressive immunization campaign in the country leading to economic reopenings. The UK won’t publish macroeconomic data on Thursday, although BOE’s Cunliffe is due to speak about digital currencies and cross-border payments at an online event.

GBP/USD short-term technical outlook

The GBP/USD pair maintains its bearish stance as the day came to an end. The near-term picture is bearish, with the pair poised to test bulls´ determination around 1.4000. In the 4-hour chart, the pair has broken below a still bullish 20 SMA, while the Momentum indicator heads south almost vertically. The RSI indicator has turned flat around 49, anyway keeping the risk skewed to the downside.

Support levels: 1.4020 1.3970 1.3915

Resistance levels: 1.4085 1.4130 1.4170

View Live Chart for the GBP/USD

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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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