The Cable is ranging between the 1.3950 and 1.4000, after closing below that trend line and the 1.4000 handle, GBPUSD is retesting it as new resistance.
The question now is, will we see the pound continue lower, or is this a false break?The jury is out for now, but the 1.4000 to 1.4100 region is resistance for now. A cycle lower would target the next key support at 1.3670.
Alternatively, a daily close above the 1.4000 region would signal strength and perhaps a confirmed false break.
Today investors are going to be closely watching the Bank of England’s Monetary policy summary and Asset Purchase facility which will certainly create some volatility in the market. After that the US quarterly final GDP will be released.
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