GBP/USD clings to 1.4000, for now

• GBP/USD drops briefly below 1.4000 to hit 1-week lows
• Dollar continues to gain on strong jobs report
• Investors attention turns to BoE policy meeting on Thursday

GBP/USD managed to regain a few pips and is holding up above the 1.40 mark, after testing levels below for first time in nearly a week.

The dollar gathered momentum on Monday and advanced versus most rivals, dragging Cable to a low of  1.3986 at the beginning of the New York session. GBP/USD however, managed to climb back above 1.4000, although the bounce was capped by the 1.4030 zone. At time of writing, the pair is trading at 1.4005, 0.78% down on the day.

On Friday, a better-than-expected US labor report (NFP +200K vs +180K expected) boosted the dollar which is extending gains into a second day versus its major rivals, although in an uneven manner across the board.

BoE expected to keep policy unchanged on Thursday 

On the data front, investors attention will be on the BoE meeting on Thursday, where consensus expects the bank to keep the refi rate unchanged at 0.50%.

GBP/USD technical levels

In terms of technical levels, next supports are seen at 1.3979 (Jan 30 low), 1.3936 (20-day SMA) and 1.3915 (Jan 23 low). On the flip side, resistances could be found at 1.4149 (intraday high), 1.4175 (100-hour SMA) and 1.4200 (psychological level).