GBP/USD drops to 1.3960 ahead of Carney, fresh lows

Cable eased to sub-1.40 levels.
USD stays bid so far today.
Carney’s speech next on tap.

Pablo Piovano FXStreet

The British Pound remains on the defensive so far on Monday and is now dragging GBP/USD back to sub-1.4000 levels, recording fresh daily lows at the same time.

GBP/USD focused on Carney

GBP is following south the rest of the risk-associated assets at the beginning of the week, all amidst a better tone surrounding the buck and marginal trading conditions due to the US Washington Day holiday.

In the meantime, Cable’s upside momentum remains capped by last week’s tops in the mid-1.4100s, while the likeliness of further pullbacks stays on the cards as long as the resistance line off 2018 tops – today at 1.4154 – holds.

On the positioning front and following the latest CFTC report, GBP speculative net longs dropped to 7-week lows in the week to February 13.

Event-wise in the UK, BoE’s Governor Mark Carney is due to speak at 1845GMT, grabbing the bulk of investors’ attention today.

GBP/USD levels to consider

As of writing, the pair is losing 0.31% at 1.3984 and a breach of 1.3959 (low Feb.19) would aim for 1.3943 (10-day sma) and then 1.3765 (low Feb.9). On the upside, the next hurdle emerges at 1.4146 (high Feb.16) seconded by 1.4154 (near term resistance line) and finally 1.4280 (high Feb.2).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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