The Cable continues its downturn after the S&P experienced a late-session tumble. However, the GBP/USD is finding support on our 2nd tier downtrend line and the key psychological 1.40 level.

Given that Britain won't release any noteworthy economic data until tomorrow, we expect the Cable to rely on its positive correlation with U. S. equities until then.

Therefore, the GBP/USD is presently implying the currency pair is waiting to see if the selloff in U. S. equities yesterday carries over into today's trading session. Meanwhile, the U. S. will release Building Permits, Housing Starts, and PPI this morning, which will surely be market movers.

Hence, we expect high volatility in all major Dollar crosses. The Cable remains locked into its downtrend after failing to climb back above March highs and our 3rd tier downtrend sits far out in the distance.

If the GBP/USD dips reasonable below 1.40 we anticipate a heightened near-term selloff. Fundamentally, we find resistances of 1.4047, 1.4112, 1.4156, and 1.4199. To the downside, we see supports of 1.4008, 1.3957, 1.3910 and 1.3856. The GBP/USD is currently exchanging at 1.2986.

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