GBP/USD analysis: bearish pressure persists

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2873

The GBP/USD pair reverted its Wednesday's gains and settled at 1.2873, confined to a limited range for a second consecutive day. UK July retail sales came in better-than-expected, although June's figures were downwardly revised. According to official data, the volume of sales grew by 0.3% in the month, and by 1.3% when compared to a year earlier, this last, below the 1.4% expected, whilst core readings beat expectations amid stronger spending on food. The pair attempted to regain the 1.2900 level after the release for a third time on the day, but failed, as the Pound is unable to attract investors. The following decline was limited by dollar's broad weakness, amid political discord in Washington, as after the dissolution of Trump's advisory councils, rumors made the rounds on a possible resign of Gary Cohn, the Director of the National Economic Council. The risk remains towards the downside for the pair, as in the 4 hours chart, the upside is being contained by a bearish 20 SMA, currently at 1.2895, while the RSI indicator resumed its decline, although holding above its daily low. The pair bottomed at 1.2841 so far this week, now the immediate support and the level to break to confirm a new leg lower.

Support levels: 1.2840 1.2795 1.2760

Resistance levels: 1.2895 1.2930 1.2965

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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