GBP/USD Price Runs Out of Steam at 1.40, US Data Eyed

• GBP/USD bulls run out of steam near 1.4000.
• Weaker US data and Fed’s dovish stance keep lending support to the Pound.
• Decreasing Covid concerns in the UK are also helping the Pound.

After testing the monthly highs in the overnight session, the GBP/USD price is now consolidating the gains in the Asian trading session on Friday.

The pair looks out of steam near the 1.4000 but is still high. At the time of writing, the GBP/USD is trading at 1.3945 with -0.4% losses on the day.

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The US Dollar Index (DXY), which tracks the Dollar’s performance against its six largest peers, is below Asian trading hours and has seen a slight decline as it was at its lowest level since the previous session.

Weaker US data and a cautious Fed expected the Dollar to move. Gross domestic product (GDP) grew 6.5 percent in the first quarter, well below the market consensus of 8.5 percent.

Federal Reserve Chairman Jerome Powell said on Thursday that there is still more ground that needs to be covered before it’s time to talk about tapering.

On the other hand, the Pound rises as it is announced that the UK escapes quarantine for fully vaccinated visitors from the EU and the US.

Meanwhile, the EU is suspending litigation against the UK under the Northern Ireland Protocol (NIP). As a result, investors expect resale of US personal spending, income, and personal consumption data.

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GBP/USD price technical analysis: Key support to help buyers

The pair is showing some signs of mild retracement. But the price is still well above the 200-period SMA on the 4-hour chart. The price is also above the key resistance turned support of 1.3910. Therefore, the bears can target the 1.3910 area, which is a broken resistance and the area of 20-period SMA. The volume looks not well for the bulls. It seems like the bullish volume has already been exhausted. However, we cannot rule out the fresh buying to emerge near the 1.3900 area.

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