- Cable down over a big figure since daily tops.
- USD pick up behind the move.
- U-Mich index coming in next.
The Sterling is now trading in the red figures and is forcing GBP/USD to retreat more than a cent to the current vicinity of the psychological support at 1.4000 the figure.
GBP/USD lower on USD-buying
Quite a moderate rebound in the greenback has motivated Cable to not only erase its daily gains but also to shed almost 150 pips since daily peaks in the 1.4140 region.
USD-bulls seem to have re-emerged around multi-year lows in the 88.30/20 band when tracked by the US Dollar Index (DXY), forcing the ongoing knee-jerk in the risk-associated space.
Furthermore, the upside in the buck stays bolstered by auspicious results from the US housing sector, where housing starts and building permits came in above expectations during January.
Later in the NA session, the advanced US consumer sentiment gauged by the Reuters/Michigan index will close the calendar for the week.
GBP/USD levels to consider
As of writing, the pair is losing 0.50% at 1.4046 and a breach of 1.4005 (low Feb.16) would aim for 1.3948 (10-day sma) and then 1.3765 (low Feb.9). On the upside, the next hurdle emerges at 1.4145 (high Feb.16) seconded by 1.4165 (near term resistance line) and finally 1.4280 (high Feb.2).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.