GBP/USD attempts a rebound from 1.4060
- Sterling drops to 3-day lows around 1.4060.
- USD and Brexit among today’s drivers of the downside.
- Carney’s speaks tomorrow.
The buying interest around the greenback has prompted the risk-associated space to move lower at the beginning of the week, with GBP/USD correcting to the 1.4060 region, where it seems to have found so decent support for the time being.
GBP/USD attention to Carney, data
Cable came under renewed selling pressure today following a generalized offered bias around riskier assets, all against the better tone surrounding the US Dollar.
USD stays bid after US consumer prices tracked by the core PCE rose in line with expectations 1.5% on a year to December and 0.2% inter-month. In addition, US personal income surprised to the upside gaining 0.4% during the last month of 2017, while personal spending disappointed investors expanding at a monthly 0.4%.
Headlines related to Brexit noted there are some discrepancies between EU and UK negotiators regarding the Brexit transition period, which have been also weighing on the British Pound today.
In the UK docket, BoE’s M.Carney is due to speak tomorrow along with the release of BoE’s consumer credit figures, net lending to individuals, mortgage approvals and M4 money supply.
GBP/USD levels to consider
As of writing, the pair is losing 0.56% at 1.4081 and a breach of 1.4058 (low Jan.29) would aim for 1.4000 (10-day sma) and then 1.3781 (21-day sma). On the upside, the next hurdle aligns at 1.4345 (2018 high Jan.25) followed by 1.4387 (200-week sma) and finally 1.5020 (post-Brexit vote high Jun.24 2016).