GBP/USD: capped in 1.4020's ahead of a key space circa 1.4080

• GBP/USD: failing at 1.4020.
• GBP/USD: next target 1.4080?

Currently, GBP/USD is trading at 1.3983, down -0.04% on the day, having posted a daily high at 1.4029 and low at 1.3916.GBP is back below the 1.40 handle after failures at the typical first resistance of a handle and at aforementioned highs. 

GBP/USD: resting up ahead of key data?

1.4005 was broken in NY as the Asian top and the highest level since the Brexit referendum day (23 June 2016), but traders are not getting too ahead of themselves ahead of the nerm-term domestic risk for the UK that is elevated with Wednesday’s employment figures on the cards. Investors will pay particular attention to the UK's wages. "Wages are expected to remain unchanged at 2.5% y/y (ex-bonus 2.3% y/y). Last week’s BoE comments were constructive and Gov. Carney is scheduled to speak in Davos on Friday," explained analysts at Scotiabank. 

GBP/USD levels

Technicals continue to lean bullish while the price remains above the daily 10 and 21 SMA's with technical indicators picking up upward strength with RSI back above 70. 1.4080 is the next hurdle as the 2nd Dec monthly lows while first support comes as current spot level 1.3968/70 ahead of a deeper correction to 1.3892 and 1.3820 (21-4hr SMA level). Overall, GBP/USD remains better bid while trading above 1.3658/71 as the September highs and a double Fibonacci retracement area.