GBP/USD extends decline under 1.4200

The pound is among the worst performers in the currency market on Tuesday, erasing yesterday’s gains versus the US dollar and the euro. GBP/USD dropped further below 1.4200 during the American session and reached at 1.4120, a fresh 1-week low while EUR/GBP trades at 1-year highs above 0.8030.

Cable is attempting to move off lows and trades at 1.4150/55, a hundred pips below the level it closed yesterday.

GBP/USD levels to watch

The pair remains weak as it consolidates below Thursday's lows. To the downside the next key support could be seen around 1.4040/50 (Mar 16 and 24 low); but a daily close under 1.4100 could add bearish pressure to the pair.

To the upside, GBP/USD needs to rise back above 1.4300 to remove some negative momentum. The key level continues to be around 1.4500, where the 20-week moving average stands, also the mentioned area limited the upside during the previous months.