GBP/USD in consolidation mode after Friday’s huge gains

Alena Afanaseva Independent Analyst

FXstreet.com (Moscow) - GBP/USD is trading around 200SMA at 1.6417, rebounding from Friday’s high at 1.6457, but not ready to go below 1.64.

The Pound may get some more fuel, but later

The pair got huge support from the recently released UK retail sales adding almost 150 pips during the hour of the release. Nevertheless, we wouldn’t be too optimistic about the record rise of the numbers. According to ONS, there might be the case of seasonal effect, thus we may see significant revisions next month. As for this week, we will get some quite important reports for digestion, and the labor data scheduled for Wednesday is one of them. We expect quite positive developments in this sector, thus, the pair has good potential to go higher. The released today Rightmove house price index met the expectations, and there is no more UK data scheduled for today, thus we expect tight ranges during the whole Monday close to 1.6420 area.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6393, with support below at 1.6359 (S1), 1.6318 (S2) and 1.6277 (S3), with resistance above at 1.6511 (R1), 1.6552 (R2), and 1.6594 (R3). Hourly Moving Averages are largely bullish, with the 200SMA at 1.6417 and the daily 20EMA flat at 1.6410. Hourly RSI is neutral at 55.

Author

Alena Afanaseva

Independent Analyst

Alena joined FXStreet in 2014 as an Asia News Editor, having previously fulfilled senior research and analysis roles at a number of Russian brokerage houses.

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