GBPUSD Analysis: Consolidates after plunge
|GBPUSD
The Sterling was trading along the 55-hour SMA early on Wednesday. This lack of sentiment was disrupted massively at 0830GMT when the UK released rather disappointing inflation data. The pair plunged 89 pips in the wake of this release down to the 1.42 mark and had remained near this level by Thursday morning.
It is likely that the Sterling tries to recover some of its losses and in this session, as suggested by bullish technical indicators. However, in case of sluggish Retail Sales, the pair could fall even lower, as no restrictions until the weekly S1 at 1.4111 are apparent on the chart.
This data release might likewise have an opposite effect and thus push the pair past the 55– and 100-hour SMAs and the monthly R1 located at 1.4274. In case of weaker bullish sentiment, this area should hold firm.
Interested in GBPUSD technicals? Check out the key levels
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.