GBPUSD STILL BEARISH BELOW 1.4000 LEVEL

The British pound has recovered the 1.3900 handle against the U.S dollar, after finding support at the 1.3825 level on Tuesday, following a broad-recovery in global stock markets and a sell-off in the U.S dollar index. The GBPUSD pair is currently trading around the 1.3960 level, as price-action starts to consolidate in a tight range before its next directional move. Overall sentiment remains fragile for the British pound on Wednesday, as Brexit negotiations and UK political uncertainty continue to worry investors.

• The GBPUSD pair is still intraday bearish while trading below the key 1.4000 level, further losses towards 1.3938 and 1.3870 remain a risk.

• Should price-action on the GBPUSD pair start to move above the 1.4000 level, we may see a upward correction towards the 1.4058 and 1.4100 levels.