GBP/USD Forecast: limited declines, 1.4190 key

The Pound is performing fairly well, despite dollar's broad strength, with the GBP/USD pair trading slightly lower daily basis around 1.4230. The pair advanced up to 1.4347 last Tuesday, as the UK CPI readings surprised to the upside, but was unable to sustain gains beyond the 1.4300 mark.

With no data scheduled in the UK, sentiment is leading the way during this London session, generally positive amid strong Chinese data that suggests the economy is resuming growth. During the upcoming US session, the release of PPI and Retail Sales figures will take center stage, as strong data may see the ongoing dollar upward correction extending all through the day.

Technically, the 4 hours chart shows that the price has bounced from a bullish 20 SMA, offering an immediate support at 1.4190. In the same chart, the technical indicators continue retreating from overbought levels, but remain within positive territory, indicating further declines are required to confirm a downward continuation. Below the mentioned 1.4190 level, the next intraday supports stand at 1.4150 and 1.4110.

The pair needs to advance beyond 1.4260, on the other hand, to recover some additional ground towards the critical 1.4300 figure. Advances beyond this last however, are still seen as selling opportunities.

View the live chart of the GBP/USD

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