GBP/USD at 3-day lows testing 1.40 handle ahead of US NFP on Friday

• The GBP/USD is under pressure as it falls to three day-lows and tests 1.40.  
• Worst than expected UK Markit Services PMI compounded the bearish pressure on the Cable. 

The GBP/USD is trading at around the 1.40 level down 0.58% on Thursday as bears took the lead on the back of worst than expected UK Markit Services PMI.  The index for March came in at 51.7 versus 54 forecasted by analysts.

Looking ahead, the US Non-Farm Payroll is expected on Friday at 12:30 GMT and the leading macroeconomic indicator can provide further directionality for the currency pair.   

GBP/USD weekly chart

Last week the GBP/USD failed to break above the 1.43 handle and the 200-period simple moving average on the weekly chart. The market is currently trading below last week’s low.  

GBP/USD daily chart

The Cable is currently testing the 1.40 figure and 50-period simple moving averages on the daily time frame. The daily RSI and MACD are bearishly configured.

GBP/USD 4-hour chart

The bears strongly pushed the market lower towards 1.40 and the 200-period simple moving average, breaking the ascending trendline. The 1.4015 swing low and 1.4050 psychological level become now a resistance. The next key support is seen at 1.3889 previous swing low, followed by 1.3781 the low made on March 8. The RSI is flirting with 40 and the MACD had a bearish crossover.