The GBP/USD pair trades near a daily low set at 1.4047 set with the European opening, with the Pound still being an unattractive asset. The lack of strong macro local data is also affecting the GBP, as investors can't get new clues on the kingdom's economic health. The technical picture favors the downside in the short term, as in the 1 hour chart, the 20 SMA caps the upside around 1.4110, whilst the technical indicators gain bearish strength after a consolidative stage in bearish territory. In the 4 hours chart, the technical indicators lack directional strength but hold near oversold levels, as the 20 SMA extended its decline further below the 200 EMA, and offers an even stronger dynamic resistance around 1.4170. The weekly low stands at 1.4004, the level to beat to confirm a downward acceleration which ultimately exposes the pair to a steady decline down to the 1.3830 region.
Support levels: 1.4050 1.4004 1.3965
Resistance levels: 1.4110 1.4140 1.4170