GBP/USD steadies around 1.4050 after fresh daily lows

GBP/USD has continued to pull back from 1 ½-year highs as the greenback takes back some losses underpinned by higher US yields and profit taking.

Cable fell to a 5-day low of 1.4024 during the New York session before steading at the mid-1.40’s. At time of writing, GBP/USD is trading at 1.4048, 0.71% or 100 pips below its Friday’s close.

Following a string of second-tier US data, investors’ attention is gathering around Fed’s policy decision on Wednesday ahead of the US nonfarm payrolls report due on Friday. Meanwhile, in the UK docket, BoE Governor Mark 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 technical levels

As for technical levels, short-term supports for GBP/USD are seen at 1.4022 (200-hour SMA), 1.3990 (10-day SMA) and 1.3915 (Jan 23 low). On the flip side, resistances could be found at 1.4157 (intraday high), 1.4285 (Jan 26 high) and 1.4344 (Jan 25 high).