GBP/USD Is Neutral-To-Bearish, Could Fall On A Break Below 1.4100

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GBP/USD Current price: 1.4148

• UK CBI Realized Sales unexpectedly contracted to 18 in May from 20 previously.
• Easing lockdown measures in the UK limit the downside for the pound.
• GBP/USD is neutral-to-bearish, could fall on a break below 1.4100.

The GBP/USD pair traded as high as 1.4210 but retreated from the level to close the day unchanged around 1.4150. There was no particular catalyst for the pair’s decline, although modest dollar’s demand during US trading hours kept the pair near its daily lows through the American session. The UK reported the CBI Realized Sales, which unexpectedly contracted to 18 in May from 20 in the previous month, missing the expected 24. Also, Public Sector Net Borrowing surged to £30.962 billion in April, worse than anticipated. The UK macroeconomic calendar has nothing to offer this Wednesday.

Meanwhile, lockdowns ease in the United Kingdom, although the number of new coronavirus cases increased sharply due to the spread of the Indian variant. So far, authorities have shown no concerns and asserted that the vaccines used in the kingdom protect from the new covid strain.

GBP/USD Short-Term Technical Outlook

The GBP/USD pair is neutral in the near-term, with the risk skewing to the downside, although without technical confirmations at the time being. The 4-hour chart shows that the pair keeps seesawing around a flat 20 SMA, while the longer ones head north below the current level. Technical indicators lack directional strength within negative levels, falling short of suggesting a bearish continuation. Bears could have better chances if the pair break below the 1.4100 figure.

Support levels:1.4095 1.4065 1.4020

Resistance levels: 1.4175 1.4220 1.4260

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.