GBP/USD Analysis: Fresh Bears Face Headwinds at 1.40 Support

Technical analysis of Forex market

Cable extended Wednesday’s 0.64% fall and fell ticks ahead of psychological 1.40 support on Thursday.

Fresh risk aversion on upbeat US inflation figures that fueled a fall in global equities, weighs heavily on risk sensitive pound.

Bids at 1.40 zone (psychological/former multiple upside rejections / a number of option expiries) provided headwinds to fresh bears, keeping the price action above 1.40 for now, with softer dollar after better than expected US weekly jobless claims, contributing to support.

Daily close above 1.4020/00 zone would ease immediate bearish pressure, however, more work at the upside (regain of minimum 1.41 handle) would be required to sideline bears.
Firm break of 1.40 and nearby pivotal Fibo support at 1.3976 (38.2% of 1.3669/1.4166) would signal deeper pullback and confirm temporary top at 1.4166 (May 11 high).

Res: 1.4049; 1.4077; 1.4103; 1.4153.
Sup: 1.4020; 1.4000; 1.3976; 1.3940.