GBP/USD drops below $1.4024, heavy news day on the cards for Europe

• GBP/USD down almost 60 pips since New York closed yesterday.
• Dollar continues to bounce following extended rout across major pairs.

GBP/USD drifted lower through Asia, shedding 50 pips from the close of New York before crossing with yesterday's low of $1.4025. As of writing price is currently testing $1.4015, and continues to drop as European markets come on-line ahead of the London open.

Heavy news week for the Sterling/Dollar pair, with soft data kicking things off early today. Consumer Credit and Mortgage Approvals come at 9:30 am GMT, and later today the Bank of England's Mark Carney will be speaking at 3:30 pm. Sterling can expect some heavy knock-on risk action following the release of EZ 4th quarter GDP figures at 10:00 am, and USD pairs in general can expect a good level of action when the US drops their Non-Farm Payrolls on Friday, at 1:30 pm.

The Sterling has been on a tear against the US Dollar lately despite growing Brexit concerns and in-fighting within Theresa May's dominant Tory Conservative party, as the US Dollar shed support and confidence following verbal whipsawing regarding the value of the Greenback as President Trump and his administration struggle to make their public statement match up with each other. The US Dollar has been bolstered recently on the back of increasing treasury yields, with the benchmark 10-year Treasury note reaching a 2.7% yield for lenders to the world's largest economy.

GBP/USD Technicals

Sterling has pulled back from last week's market high of $1.4344, and while long-term traders will note the 200-day SMA is fully intact and sloping upwards while still trading within last year's high-low for the pair, intraday levels lend themselves to continued short-term retracement, with the nearest swing support level at $1.3928.