GBPUSD – key support zone under pressure as pound eases after downbeat UK data
Cable fell to session low at 1.4041, unaffected by turmoil in the markets on China’s retaliation on US tariffs plan but came under pressure on weak UK construction data (Construction PMI fell to 47 in Mar the lowest since July 2016 vs 50.9 f/c and 51.4 in Feb).
Fresh weakness after recovery attempts were repeatedly capped by 10SMA, which turn s lower today, makes the downside vulnerable.
Initial support at 1.4020 (rising 20SMA) came under pressure, with risk of testing key support zone between 1.4010 (higher base), psychological 1.40 support (also top of thinning daily cloud) and 1.3090 (55SMA), loss of which would generate stronger bearish signal.
Res: 1.4065; 1.4099; 1.4126; 1.4154
Sup: 1.4020; 1.4010; 1.3990; 1.3978