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 recovers further from one-month low set on Friday, eyes mid-1.1800s on weaker USD

The EUR/USD pair is seen building on Friday's late recovery from the 1.1750-1.1740 region, or a nearly one-month trough, and gaining some follow-through positive traction at the start of a new week. The momentum lifts spot prices to the 1.1835 area during the Asian session and is sponsored by a broadly weaker US Dollar.

GBP/USD gathers strength above 1.3500 amid tariff confusion

The GBP/USD pair gains traction to around 1.3520 during the early Asian session on Monday. The US Dollar faces some selling pressure against the Cable as tariff uncertainty lingers. Traders will take more cues from the US Producer Price Index report for January, which will be published later on Friday.

Gold eyes a daily closing above key 61.8% Fibo resistance

Gold is adding over 1% early Monday, after having gained 2% on Friday. The bright metal scales key technical hurdles, as buyers stay strong amid renewed tariffs and economic uncertainty alongside looming US-Iran geopolitical tensions.

Top Crypto Losers: Zcash, Pump.fun, and LayerZero extended losses as Bitcoin loses $65,000

The cryptocurrency market starts the week in panic mode, with altcoins Zcash, Pump.fun, and LayerZero. Bitcoin falls below $65,000 as the US President Donald Trump regroups amid renewed trade policy risks.

Liberation day take two, the tariff machine just changed gears

Let me caveat this from the outset. What we are watching is first-order mechanics, not the grand macro endgame. This is the market’s immediate reflex to a 15% Trump tariff levy dressed up as judicial drama. The Supreme Court blocked Trump tarrif hammer. The White House came back with a scalpel.