GBP / USD Down to New Low, Around Mid 1.38 ahead of US Data
The GBP / USD pair extended the pullback from the 1.3925-20 selling offer zone and refreshed the session lows in the last hour.
Currently trading around mid-1.38, the pair has now eroded most of the previous session's rise post-UK CPI and weighed down by a modest rise in US Dollar demand.
A good rebound in US Treasury bond yields helped the greenback to recover its previously lost footing and has been one of the main factors behind the decline of more than 75 pips from Asian session highs.
From a technical perspective, the pair is retreating from the short-term downtrend line and thus, a deeper pullback, led by some additional cancellation of long positions, is now seen as possible.
The focus of investors will remain fixated on upcoming US economic releases - consumer inflation figures and monthly retail sales, which will help determine the next targeted steps.
Technical levels are observed
Follow-up selling pressure has the potential to continue dragging the pair towards the next support near the area of 1.3810-1.3800, below which further decline could continue towards the level of 1.3765 (near the 4-week low set on last Friday).
To the upside, the 1.3890 area now seems to act as a direct resistance and further upside may continue to face new sell offer near 1.3920-25 area.