GBP/USD analysis: trims daily gains, at risk of breaking key 1.4000

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4034

GBP/USD completed a pullback to a broken trend line before turning south.
UK Markit PMIs on manufacturing, construction, and services to be out this week.

The British Pound started the day with a positive tone, with the GBP/USD pair advancing p to 1.4077, although it then retreated to end the day in the 1.4030 region, little changed from Friday's close. There were no news coming from the UK, resulting in the USD leading the way for the pair. Later this week, however, the kingdom will see the release of the Markit PMIs, on manufacturing, services, and construction. Worse-than-expected results will be enough to send the pair below the critical 1.4000 figure. From a technical point of view, the 4 hours chart shows that the pair pulled back to the daily descendant trend line broken last week, meeting selling interest near it and also around a bearish 20 SMA, a sign of bulls being not actually convinced. Technical indicators in the mentioned chart have corrected higher from oversold readings before losing upward strength and turning lower, the Momentum right below its 100 level, but the RSI around 38. An immediate support comes at 1.4010, with a more relevant one at 1.3985, as once below this last, the downward move will likely gain momentum.

Support levels: 1.4010 1.3985 1.3940

Resistance levels: 1.4040 1.4085 1.4125

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.