FXstreet.com (Barcelona) - After it falls more than 140 pips in the early American session, the GBP/USD has fallen below the 1.4000 level from the 1.4141, at the beginning of the American session, to the 1.3985, lowest level since January 27.
Along the day, the Cable has fallen around 300 pips from the 1.4489, today's high, to the currently 1.3985. GBP/USD is in a bearish consolidation, if the downside movement is confirmed, the pair next support level could be at the 1.3910/25 area. Swinging lower than this, the pair could reach as low as 1.3915 and below there 1.3820.
According to the FastBrokers Research Team, the Pound is under selling pressure as reaction for the bad HSBC earnings report: The Cable is selling off sharply on Monday in reaction to a terrible earnings report from HSBC. Additionally, the major London bank will need to raise cash to stay afloat, showing a second wave of contraction is washing through the global financial industry. Since Britain's GDP is highly reliant on the financial sector, the Cable is getting knocked with the currency pair heading back towards the psychological 1.40 level.