GBP/USD Forecast: Pound on the back-foot ahead of UK first-tier events
|GBP/USD Current Price: 1.2998
- UK CBI Distributive Trade Survey on sales remained unchanged in January for a third consecutive month.
- The Bank of England will announce its monetary policy decision next Thursday.
- GBP/USD technically bearish and at risk of losing 1.2900.
The GBP/USD pair lost the 1.3000 threshold during US trading hours, trading as low as 1.2974, following the release of mostly encouraging US data. Looming BOE´s decision and Brexit are taking their tolls on Pound, combined with persistent demand for the American currency. The UK CBI Distributive Trade Survey on realized sales remained unchanged in January for a third consecutive month, missing the market’s expectation of 3.0% and adding to the sour tone of Sterling. This Wednesday, the UK will only publish minor housing-related data, irrelevant ahead of the mentioned first-tier events scheduled for Thursday and Friday respectively.
GBP/USD short-term technical outlook
The GBP/USD pair recovered from the mentioned low and is currently hovering around the 1.3000 level, although with the risk clearly skewed to the downside according to the 4-hour chart, as the pair extended its decline below all of its moving averages. The 20 SMA is gaining downward strength between the larger ones, but they all remain confined to a tight range. Technical indicators in the meantime, have stabilized near their daily lows and well into negative territory, in line with additional slides.
Support levels: 1.2970 1.2930 1.2895
Resistance levels: 1.3040 1.3085 1.3110
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