GBP/USD Price Analysis: Renews six-week low with eyes on 1.1920 support and UK Retail Sales

GBP/USD takes offers to refresh multi-day low, drops for the third consecutive day.
Clear downside break of six-week-old trend line, bearish MACD signals favor sellers.
Nearly oversold RSI (14) suggests limited room towards the south.
50-SMA holds the key to buyer’s conviction, 1.2000 threshold guards immediate upside.

Anil Panchal FXStreet

GBP/USD stands on slippery grounds as it refreshes the 1.5-month low near 1.1950 during early Friday. In doing so, the Cable pair extends the previous day’s downside break of a six-week-old ascending trend line during the three-day losing streak.

Not only the break of a multi-day-old ascending trend line but the bearish MACD signals also favor the GBP/USD sellers.

However, the RSI (14) line is near the oversold territory and suggests consolidation in the Cable price before the next leg towards the south.

As a result, an upward-sloping support line from November 17, 2022, around 1.1920 by the press time, becomes an important support to watch.

Should the GBP/USD pair remains bearish past 1.1920, the odds of witnessing a slump toward the previous monthly low of 1.1841 can’t be ruled out. It’s worth noting that the 1.1900 threshold acts as an extra filter during the anticipated fall.

Alternatively, a convergence of the previous support line from early January and the descending trend line from Tuesday, near the 1.2000 psychological magnet, appears a short-term key hurdle to watch for the GBP/USD pair buyers during a corrective bounce.

Following that the 50-SMA level surrounding 1.2080 should lure the Cable bulls.

On a different page, most of the UK data have been downbeat so far and hence pessimistic expectations from the British Retail Sales for January, up for publishing at 07:00 GMT on Friday, seem to weigh on the quote. Even so, market consensus signals -0.3% MoM figure versus -1.0% previous readings.

GBP/USD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.1952
Today Daily Change	-0.0040
Today Daily Change %	-0.33%
Today daily open	1.1992

Trends
Daily SMA20	1.2214
Daily SMA50	1.2178
Daily SMA100	1.1894
Daily SMA200	1.1941

Levels
Previous Daily High	1.2074
Previous Daily Low	1.1966
Previous Weekly High	1.2194
Previous Weekly Low	1.1961
Previous Monthly High	1.2448
Previous Monthly Low	1.1841
Daily Fibonacci 38.2%	1.2007
Daily Fibonacci 61.8%	1.2033
Daily Pivot Point S1	1.1947
Daily Pivot Point S2	1.1902
Daily Pivot Point S3	1.1839
Daily Pivot Point R1	1.2056
Daily Pivot Point R2	1.212
Daily Pivot Point R3	1.2165

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.

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