GBP/USD analysis: busy calendar in the UK this Friday
|GBP/USD Current price: 1.2163
The GBP/USD pair closed in the red for a fourth consecutive day, having extended its decline by a few pips to a fresh 7-week low of 1.2133. An early advance was contained by selling interest on an approach to the 1.2200 level, with the pair confined to Wednesday's range, amid the absence of UK headlines. This Friday, however, the UK will release its January trade balance and industrial and manufacturing production figures, whilst the BOE will release its Consumer Inflation Expectations report, all set to determinate the health of the local economy. From a technical point of view, the risk remains towards the downside, with a bearish 20 SMA, currently at 1.2190, leading the way lower as approaches to the level have triggered downward moves ever since the month started. In the same chart, technical indicators have managed to bounce from near oversold levels, but remain well below their mid-lines, not enough to support additional gains. A recovery beyond 1.2220 could see the pair correcting higher, but selling interest is now aligned around 1.2260, the 61.8% retracement of the January rally.
Support levels: 1.2130 1.2085 1.2040
Resistance levels: 1.2190 1.2220 1.2260
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