GBP/USD tumbles further to 1.4040, 2-week lows

• Cable faces further selling pressure around 1.4040 today.
• The Sterling continues to suffer the dovish tone from BOE’s Carney.
• The pair is down more than 3 big figures since fresh YTD tops near 1.4380.

After climbing to fresh 2018 tops in the vicinity of 1.4080, GBP/USD sparked a sharp sell off which now reaches the 1.4040 region, or fresh multi-day lows.

GBP/USD weaker post-carney, focused on BoE

Cable quickly retraced the up move to the 1.4380 region – or fresh post-Brexit tops – this week, as market participants continue to unwind long positions in response to the dovish message from Governor Mark Carney at his speech on Thursday.

In fact, a rate hike by the ‘Old Lady’ at the May meeting could not be a ‘done deal’ after all, as Carney factored in the recent mixed data from the UK docket, where inflation, earnings and retail sales all came in below expectations.

In addition, Carney noted that Brexit uncertainty dampens prospects of investment in the country, adding that wage growth appears limited as a result of the lack of traction in productivity.

In the meantime, spot is down for the fourth consecutive session, trading in the area of multi-day lows around 1.4040 and opening the door for a continuation of the pullback, at least in the near term, as inferred by recent activity in GBP futures markets.

GBP/USD levels to consider

As of writing, the pair is losing 0.23% at 1.4054 and a break below 1.4010 (55-day sma) would aim for 1.3965 (low Apr.5) and then 1.3847 (100-day sma). On the upside, the next hurdle emerges at 1.4135 (21-day sma) seconded by 1.4192 (10-day sma) and finally 1.4377 (2018 high Apr.17).