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04.03.202116:16 Forex Analysis & Reviews: GBP/USD Price Analysis for 4th March, 2021

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GBP/USD struggles and remains below the 1.4000 mark.
Sustained USD buying prompted some selling around GBP/USD on Thursday.
The downside seems limited ahead of the Fed Chair Jerome Powell's speech.

The GBP/USD pair quickly retreated around 35-40 pips from the early European session highs and dropped to fresh daily lows, around 1.3930-25 region in the last hour.The pair struggled to capitalize on its intraday uptick, rather met with some fresh supply near the 1.3965-70 region and was pressured by sustained US dollar buying interest. The upbeat US economic outlook continued underpinning the USD, which, in turn, was seen as a key factor that exerted some pressure on the GBP/USD pair.

From a technical perspective, the support zone that surrounds the 1.3850 mark held on . Namely, after testing the zone, GBP/USD began a recovery. GBP/USD is stuck in a consolidation range band between just under 1.4000 and 1.3850

Hence, it remains to be seen if the GBP/USD pair is able to capitalize on a directional breakout move from the consolidation range. Sustained weakness below the 1.3850 mark will reinforce the negative outlook. Support awaits at 1.3840, last week's trough.Further down, 1.2860 and 1.13830 are eyed.Critical resistance awaits a 1.40, which is a psychologically significant level and also the daily high.

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