GBP/USD retreats over 50-pips from highs, back below 1.2200 handle
|Sell on rallies remains the key theme surrounding the British Pound, with the GBP/USD pair retreating over 50-pips from session peak near 1.2230 region.
Currently trading around 1.2175-80 region, the pair managed to staged a goodish recovery on Friday amid prevalent bearish tone surrounding the US Dollar in wake of disappointment from President-elect Donald Trump's first news conference.
The recovery momentum, however, once again lost steam at higher levels as investors remain worried over increasing possibilities of a 'hard Brexit'. Also on Thursday, the pair witnessed a sharp reversal of over 150-pips on news of UK Prime Minister Theresa May's upcoming speech that could unveil her plans for ending Britain's membership with the European Union.
In the meantime, the release of monthly retail sales data, PPI print and Prelim UoM Consumer Sentiment index from the US might provide some impetus for short-term traders during early NA session on Friday.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet notes, "A recovery above 1.2210 could see the pair extending its gains up to 1.2280, with further upward momentum exposing 1.2330 a major static resistance level where selling interest is expected to resume. Below 1.2140, the daily low, the decline will likely extend down to 1.2080, whilst beyond this last, 1.2037, the weekly low comes next."
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.