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.

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