GBP/USD grinds lower on US data

GBP/USD is now accelerating its daily decline, printing fresh session lows in the proximity of 1.4060.

GBP/USD weaker on US releases, looks to FOMC

The pair has seen its downside pressure intensified after the auspicious releases in the US docket for the month of February, with inflation figures gauged by the CPI and Housing Starts have surpassed initial forecasts, giving extra wings to the greenback.

Still in the US, February’s Industrial Production and Capacity Utilization figures are due next, followed by the FOMC statement and press conference by Chief Janet Yellen. It is worth noting that market expectations of an ‘on hold’ stance remains high, although the Committee could leave the door open for a rate hike in April or June.

GBP/USD levels to consider

As of writing the pair is losing 0.59% at 1.4066 and a breakdown of 1.4028 (23.6% Fibo of 1.4670-1.3833) would aim for 1.4000 (psychological level) and finally 1.3836 (multi-year low Feb.29). On the other hand, the initial hurdle lines up at 1.4249 (50% Fibo of 1.4670-1.3833) ahead of 1.4330 (55-day sma) and then 1.4438 (high Mar.11).

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