GBP/USD has fallen sharply, trading below 1.39 and down some 350 pips from the highs. The US dollar picks up bids as the bond market rout seems to resume. BOE Governor Bailey expects a negative first quarter for the economy.GBPUSD pair is at risk while trading under the psychological 1.4000 level and had breached below an ascending trend-line support and could start to fall towards the 1.3840 support region.

However, from the recent price action on the 4 hourly chart, price have rejected 1.3940 previous resistant breakout level. This could indicate a short term correction. Meanwhile, technical indicators on the 4 hourly chart maintained their bias for a short term corrective move which may lead to test 1.400o round figure mark. The Stochastics oscillator is firmly in the overbought levels supporting the bias.

The GBPUSD pair is only bullish while trading above the 1.4000 level, key resistance is found at the 1.4100 and the 1.4200 levels. Support awaits at 1.39, the daily low, and then by 1.3840.