GBP/USD Forecast: Poised to test July low at 1.3571

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3640

The UK August GFK Consumer Confidence is foreseen at -8 from -7 in the previous month.
The kingdom will publish July Retail Sales on Friday, expected at 0.4% MoM.
GBP/USD is oversold in the near term, but bears are not done yet.

The British Pound was among the worst performers against the greenback, with GBP/USD falling to 1.3639, its lowest for this August, holding nearby ahead of the Asian opening. The pound came under renewed selling pressure amid a dismal market’s mood pushing investors into safer bets. The UK macroeconomic calendar was empty, which made it easier to sell the sterling.

On Friday, the country will publish August GFK Consumer Confidence, foreseen at -8 from -7 in the previous month. Later in the day, the UK will release July Retail Sales, expected to have risen by 0.4% MoM and 6% YoY.

GBP/USD short-term technical outlook

The GBP/USD pair pressures its Thursday low, accelerating its slump after breaking below the 61.8% retracement of its July range at around 1.3730. The 4-hour chart shows that it is also far below a bearish 20 SMA, which extended its slide below the longer ones. Meanwhile, the Momentum indicator hovers near daily lows while the RSI heads south at around 22, favoring another leg lower despite oversold conditions. The next relevant support comes at 1.3571, July monthly low.

Support levels: 1.3620 1.3570 1.3510

Resistance levels: 1.3690 1.3735 1.3780

View Live Chart for the GBP/USD

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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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