GBP/USD: losing momentum, but still positive

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3538

The GBP/USD pair is marginally higher daily basis, having trimmed most of its early gains, achieved after the release of UK Retail Sales figures for August. Sales increased by 1.0% compared with July, and by 2.4% when compared to a year earlier, more than doubling market's expectations. The core readings, excluding fuel prices, were also sharply higher, while all July readings suffered upward revisions. The GBP/USD pair topped at 1.3606 daily basis, now having lost the upward momentum, but with the downside potential limited, as the price remains above 1.3505, the 23.6% retracement of its latest bullish run. In the 4 hours chart, the price is stuck around its 20 SMA whilst technical indicators turned horizontal, the RSI around 61, and the Momentum within negative territory. Further declines below the mentioned Fibonacci support should lead to a test of 1.3440, the 38.2% retracement of the same rally.

Support levels: 1.3505 1.3480 1.3440

Resistance levels: 1.3560 1.3600 1.3635

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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