GBP/USD: Indecisive market, focus on the UK retail sales release

The GBP/USD created a big doji candle on Wednesday, signaling indecision in the marketplace.
The 100-day MA proved a tough nut to crack on the negative Brexit news.
The UK retail sales, scheduled for release at 08:30 GMT, could provide a directional bias to GBP/USD.

Omkar Godbole FXStreet Contributor

The GBP/USD pair printed an intraday high and low of 1.3125 and 1.3098 yesterday before closing on a flat note at 1.3144.

Essentially, the currency pair charted a big doji candle, which indicates indecision in the marketplace.

Further, the 100-day moving average (MA) proved a tough nut to crack for the second day as investors offered GBP after leaders of Lithuania and Slovakia and the European Commission President Jean-Claude Juncker informed markets that a Brexit deal was still "far away".

Looking forward, the rally from the Sept. 5 low of 1.2785 would resume if the pair closes today above 1.3215 (yesterday's doji candle). On the other hand, a close below yesterday' low of 1.3098 would validate the bear failure at the 100-day MA hurdle and open the doors for a deeper pullback.

An above-forecast UK retail sales reading could help the GBP secure a bullish close, while a big miss on expectations could prove costly. Moreover, GBP is already on the defensive, courtesy of the negative Brexit newsflow.

At press time, the GBP/USD pair is trading at 1.3150.

GBP/USD Technical Levels

Resistance: 1.3158 (100-day MA), 1.3215 (yesterday's high), 1.3281 (76.4% Fib R of 1.3472/1.2662)

Support: 1.3133 (5-day MA), 1.3098 (previous day's low), 1.3075 (200-hour MA)

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Expanding
1H	Strongly Bearish	Neutral	Shrinking
4H	Bullish	Neutral	Shrinking
1D	Bullish	Neutral	High
1W	Bullish	Neutral	Low
Updated Sep 20, 03:15 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD stays defensive below 1.1600 as USD rebounds

EUR/USD trades marginally lower below 1.1600 in the European session on Friday. The pair edges down as the US Dollar rebounds slightly after Thursday’s massive profit-taking pullback. Looming US-Iran uncertainty revives the haven demand for the Greenback, while the Euro takes a breather after the hawkish ECB hike-led rally.

GBP/USD keeps losses around 1.3400 after UK GDP data

GBP/USD trades on the back foot around 1.3400 in the European trading hours on Friday. The UK Gross Domestic Product (GDP) declined by 0.1% in April, keeping the offered tone intact around the British Pound amid a broad US Dollar rebound.

Gold sticks to losses amid Iran peace deal doubts and hawkish Fed bets

Gold attracts some sellers near the $4,246-$4,247 region during the Asian session, stalling the previous day's solid recovery move from its lowest level since November 2025. Mixed signals regarding a potential US-Iran peace deal revive demand for the safe-haven US Dollar.

Pi Network: Bulls attempt comeback as bearish strength fades

Pi Network (PI) is trading at around $0.120 after a modest recovery the previous day. Despite this recent rebound, traders should be cautious as a scheduled unlock of 14.8 million PI tokens on Friday could limit the token's recovery potential by increasing market supply. Meanwhile, the technical outlook is showing early signs of fading bearish momentum, suggesting a short-term bounce.

U.S. economic outlook: The Warsh era starts with a great debate

Warsh is starting his tenure at the Fed during a transition of sorts. Given the prior FOMC statement and the countless Fed speakers we’ve heard from since then, it seems Fed officials are in the midst of shifting toward a more neutral policy stance.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.