FxWirePro: GBP/USD dips below lower range, bearish bias increases

GBP/USD declined on Tuesday as Sterling hurt by PMI monthly survey of purchasing managers in the service sector made slight improvement in the previous month, but still suggested economy has slowed in first quarter.

• The pair made modest gain in early European session hitting as high as 1.4234 but was unable to move further on broader weakness, and declined to hit low around 1.4130 in the early US session.
• Currently the pair is trading around 1.4130 levels, it is set to decline further towards 1.4070 and later 1.4000 in the short term.
• To the upside, the strong resistance can be seen at 1.4180, a break above this level would expose the cable to next resistance level at 1.4223 levels.
• To the downside strong support can be seen at 1.4100, a break below at this level will open the door towards next level at 1.4072

Resistance Levels

R1:  1.4145 (50% Retracement level)

R2: 1.4180 (March 24th high)

R3: 1.4223 (61.8 % Retracement level)

Support Levels

S1: 1.4100 (Psychological levels)                               

S2: 1.4072 (38.2 % Retracement level)

S3: 1.4050 (March 24th lows)