GBP/USD faces barricades around 1.1850 as DXY eyes rebound ahead of US Retail Sales

GBP/USD has picked offers around 1.1850 as the DXY is attempting a rebound ahead of US Retail Sales.
A preliminary estimate for the US Retail Sales is 0.8% vs. -0.3% released earlier.
Political instability and recession fears have shifted the pound bulls on the tenterhooks.

Sagar Dua FXStreet

The GBP/USD pair has slipped to near 1.1830 after facing hurdles modestly above 1.1850 in the Asian session. The cable has displayed a subdued performance after a less confident rebound from Thursday’s low at 1.1760. Generally, a soft rebound turns quickly into a downside move as the market participants consider that trade a bargain sell.

The cable is expected to witness a steep fall after slipping below the intermittent support of 1.1820 as the US dollar index (DXY) is set to rebound after a modest correction. The DXY witnessed a steep fall on Thursday after printing a fresh 19-year high of 109.26. A rebound is expected amid higher consensus for US Retail Sales.

The US Retail Sales are seen at 0.8% for June, higher than the prior release of -0.3%. Fuel prices have shifted into bearish territory now but remained extremely solid in June. Therefore, higher energy bills must have been responsible for the higher consensus for the economic data. Also, higher Consumer Price Index (CPI) data released on Wednesday is sufficient to support higher forecasts for Retail Sales.

On the pound front, political instability and recession fears have shifted the pound bulls on the tenterhooks. The resignation of UK PM Boris Johnson has trimmed the confidence of the households in the growth prospects of the economy. Also, the scorching inflation rate has triggered recession fears. More rate hikes from the Bank of England (BOE) will remain on the cards and it would be interesting to note whether the economic catalysts would support BOE for policy tightening unhesitatingly.

GBP/USD

Overview
Today last price	1.1833
Today Daily Change	0.0010
Today Daily Change %	0.08
Today daily open	1.1823

Trends
Daily SMA20	1.2097
Daily SMA50	1.2293
Daily SMA100	1.2658
Daily SMA200	1.3081

Levels
Previous Daily High	1.1895
Previous Daily Low	1.176
Previous Weekly High	1.2165
Previous Weekly Low	1.1876
Previous Monthly High	1.2617
Previous Monthly Low	1.1934
Daily Fibonacci 38.2%	1.1812
Daily Fibonacci 61.8%	1.1844
Daily Pivot Point S1	1.1757
Daily Pivot Point S2	1.1691
Daily Pivot Point S3	1.1622
Daily Pivot Point R1	1.1892
Daily Pivot Point R2	1.1961
Daily Pivot Point R3	1.2027

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

GBP/USD declines as market caution lifts US Dollar

GBP/USD extends its gains for the second successive day, trading around 1.3200 during the Asian hours on Wednesday. The currency pair depreciated as the US Dollar gained momentum, driven by a combination of robust domestic economic data and a complex, mixed geopolitical landscape.

EUR/USD weakens below 1.1400 as Fed hike bets lift US Dollar

The EUR/USD pair trades on a negative note near 1.1380 during the early Asian trading hours on Wednesday. The major pair extends the decline as traders continue to assess the developments surrounding the US-Iran peace deal.

$4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US Dollar

Gold drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday. Despite easing inflationary concerns in the face of the recent fall in Crude Oil prices, traders have been pricing in a greater chance of a rate hike by the US Federal Reserve.

Bitcoin under pressure, Ethereum loses key support, XRP momentum weakens

Bitcoin, Ethereum and Ripple remain under pressure on Wednesday after falling slightly the previous day. BTC trades below $63,000, ETH slips below $1,700, while XRP momentum continues to weaken. The deteriorating price action in these top three cryptocurrencies suggests a potential continuation of the near-term correction.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.