GBP/USD looking for a Friday recovery as market sentiment firms up, US Dollar easing back

The GBP/USD is pushing into the high side for Friday, tapped into 1.2170.
Broader market sentiment is improving, sending the US Dollar back heading into the Friday close.
UK Retail Sales did little to help matters, printing firmly in the red.

Joshua Gibson FXStreet

The GBP/USD is looking to squeeze out some gains before the Friday closing bell, stretching into 1.2170 in the Friday midday. Despite a miss for UK Retail Sales earlier in the day, the Pound Sterling (GBP) is benefiting from a general softening in the US Dollar (USD).

UK Retail Sales drop 0.9% MoM in September vs. -0.1% expected

UK Retail Sales on Friday broadly missed the mark, with September's retailers' receipts printing a dismal -0.9% against the forecast -0.1%, and steepening the decline from August's 0.4%.

With a quiet Monday on the economic calendar, GBP traders will be looking ahead to Tuesday's UK labor and Purchasing Manager Index (PMI) figures.

UK job additions are expected to decline by an additional 198K in August as investors hope for a slight improvement from July's -207K, and markets are hoping for a slight improvement in the UK preliminary PMI, with the PMI Composite forecast to print at 48.8 compared to the last 48.5.

GBP/USD Technical Outlook

The Pound Sterling is trading into 1.2150 against the US Dollar after pinning a late high of 1.2170 on Friday, with the GBP/USD seeing a Dollar-bearish fueled recovery from the day's lows near 1.2093.

Despite Friday's moderate recovery, the GBP/USD remains firmly planted in bear country, with the pair trading down from October's swing into 1.2350. Further up the chart, the 50-day Simple Moving Average (SMA) is confirming a bearish cross of the 200-day SMA, and any technical recoveries in the chart will be set for a clash with resistance from the descending moving average.

Technical Support currently rests at October's early low of 1.2037, and a break of this level sets the GBP/USD up for a downside run into an early-year support zone near the 1.1900 handle.

GBP/USD Daily Chart

GBP/USD Technical Levels

GBP/USD

Overview
Today last price	1.2153
Today Daily Change	0.0009
Today Daily Change %	0.07
Today daily open	1.2144

Trends
Daily SMA20	1.2185
Daily SMA50	1.2419
Daily SMA100	1.2589
Daily SMA200	1.2444

Levels
Previous Daily High	1.2192
Previous Daily Low	1.209
Previous Weekly High	1.2337
Previous Weekly Low	1.2123
Previous Monthly High	1.2713
Previous Monthly Low	1.2111
Daily Fibonacci 38.2%	1.2153
Daily Fibonacci 61.8%	1.2129
Daily Pivot Point S1	1.2092
Daily Pivot Point S2	1.204
Daily Pivot Point S3	1.199
Daily Pivot Point R1	1.2194
Daily Pivot Point R2	1.2244
Daily Pivot Point R3	1.2296

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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