GBP/USD Analysis: advance so far corrective, bulls´ interest scarce
|GBP/USD Current Price: 1.2113
- UK Retail Sales beat expectations, giving the Pound a lift.
- Brexit turmoil continues, with PM Johnson repeating they would leave the EU in October.
- GBP/USD could extend its recovery toward August monthly high at 1.2209.
The GBP/USD pair triggered stops above the 1.2100 figure and rose to 1.2150, with the Pound underpinned by better-than-expected UK Retail Sales, which unexpectedly rose by 0.2% MoM in July. The market was anticipating a 0.2% decline. Yearly basis, Retail Sales were up by 3.3%. In the Brexit front, PM Boris Johnson tweet that “we are going to restore trust in our democracy and come out of the EU on October 31st,” while opposition leader Jeremy Corbyn said he will call a no-confidence vote to stop a no-deal Brexit, and call for a general election. The GBP/USD pair retreated from the mentioned high but managed to retain the 1.2100 level by the end of the American session. There’s no data scheduled in the UK for this Friday.
GBP/USD short-term technical outlook
The GBP/USD pair is offering a neutral technical stance in the short term, as, in the 4 hours chart, it settled above a directionless 20 SMA but below a bearish 100 SMA, this last at around 1.2180. Furthermore, technical indicators in the mentioned chart have lost their bullish strength after entering positive territory, falling short of anticipating another leg higher. Should the recovery continue, the next relevant resistance and a possible bullish target is 1.2209, this August high. The risk will likely turn back south on a break below 1.2090.
Support levels: 1.2090 1.2060 1.2015
Resistance levels: 1.2150 1.2185 1.2210
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.