GBP/USD moves off highs as USD recovers momentum

• GBP/USD recovery finds resistance at 1.4150
• Mnuchin supports a “strong dollar over the longer term”
• Carney sees a pickup in UK investment in 2019.

The GBP/USD moved off daily highs amid a recovery of the US dollar. The pair peaked earlier at 1.4150, slightly below yesterday’s high and then dropped almost 50 pips from the top.

It was trading at 1.4110, up around 30 pips from Monday’s close. The retreat of GBP/USD was taking place at a slower pace than the EUR/USD slide from highs. The pound gained some momentum with the testimony of Bank of England Governor, Mark Carney.

Between Mnuchin and Carney

The greenback recovered strength after US Treasury Secretary Steve Mnuchin mentioned that a strong US Dollar is in the long-term interest of the US. He also added he supports free foreign exchanged markets with no intervention. His comments triggered a recovery of the greenback.

In the US, the Federal Reserve started its 2-day meeting. Tomorrow at 19:00 GMT the statement with the decision will be released.

In the UK, BOE Carney spoke at the Lords’ Economic Affairs select committee. He offered a positive outlook to Parliamentarians. He expects business investment to rise after Brexit uncertainties were resolved.

Technical levels

The pair is hovering slightly above 1.4100. The rebound lost momentum but so far the recent slide has been limited. After bottoming earlier today at 1.3979, GBP/USD could be headed toward some hours of consolidation.

To the upside, resistance levels might be seen at 1.4150 (Jan 30 high), 1.4210/15 and 1.4240. On the flip side, supports could be located at 1.4080 (Jan 25 low), 1.4020 (Jan 29 low) and 1.3970.