GBP/USD Analysis: advance so far corrective, bulls´ interest scarce

Valeria Bednarik FXStreet

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 31^st,” 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

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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