GBP/USD Price Analysis: Bears attack adjacent support near 1.2300, UK Retail Sales eyed
- GBP/USD stays bearish at the lowest levels in seven weeks, down for the fourth consecutive day.
- UK Retail Sales growth is expected to improve in April, suggesting hardships for Cable bears amid nearly oversold RSI.
- Two-week-old falling support line, 100-DMA restrict immediate downside of the Pound Sterling.
- Recovery remains elusive below 50-DMA, 1.2370 can tame corrective bounce.
GBP/USD remains on the back foot at a two-month bottom as sellers prod a short-term support line ahead of the key UK Retail Sales data on early Friday. In doing so, the Pound Sterling struggles to extend the three-day losing streak around 1.2320-15 by the press time.
That said, the UK Retail Sales for April, expected 0.3% MoM versus -0.9% prior, can join the aforementioned two-week-old support line and nearly oversold RSI (14) line to challenge the Cable pair sellers.
However, a downward-sloping resistance line from May 10, close to 1.2370 at the latest, could challenge the GBP/USD pair’s further recovery.
Even if the Cable pair remains firmer past 1.2370, the 50-DMA hurdle of around 1.2435 may act as the last defense of the bears before giving control to the bulls.
On the flip side, a clear break of the immediate support line near 1.2300 could aim for the 100-DMA support of 1.2285.
Following that, a horizontal area comprising levels marked since March 13 and the 61.8% Fibonacci retracement of its March-May upside, respectively around 1.2190-85 and 1.2140 in that order, could challenge the GBP/USD bears.
GBP/USD: Daily chart
Trend: Limited downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
