GBP/USD consolidating above 1.40, focus on Carney

• Cable fades the spike to 1.4050.
• Carney is due to speak later today.
• US markets will remain close.

The Sterling is now alternating gains with losses vs. the greenback at the beginning of the week, taking GBP/USD to the 1.4020/30 band.

GBP/USD attention to Carney

Cable is looking to consolidate in the lower en of the recent range following Friday’s sharp drop, where it seems to have found some decent support in the 1.4000 neighbourhood.

Rangebound trading around the buck is also collaborating with the lack of direction in the pair at the beginning of the week, all amidst thin trade conditions and scarce volatility due to the holiday in US markets.

On the positioning front and following the latest CFTC report, GBP net longs dropped to 7-week lows in the week to February 13.

However, GBP should stay wary on the upcoming speech by Governor M.Carney, particularly after the hawkish tone delivered by the central bank at its latest meeting earlier in the month.

GBP/USD levels to consider

As of writing, the pair is losing 0.01% at 1.4026 and a breach of 1.3998 (low Feb.16) would aim for 1.3948 (10-day sma) and then 1.3765 (low Feb.9). On the upside, the next hurdle emerges at 1.4146 (high Feb.16) seconded by 1.4154 (near term resistance line) and finally 1.4280 (high Feb.2).