• GBP/USD witnessed some fresh selling on Friday, albeit lacked any strong follow-through.
  • Some renewed USD weakness extended some support to the major and helped limit losses.
  • Investors now look forward to the US monthly Retail Sales figures for some trading impetus.

The GBP/USD pair remained depressed through the early European session, albeit has managed to rebound around 20-25 pips from daily lows touched in the last hour.

The pair failed to capitalize on the previous day's goodish intraday bounce of around 75 pips from five-week lows, instead met with some fresh supply on the last trading day of the week. The downtick lacked any obvious catalyst and also seemed rather unaffected by some renewed US dollar selling bias.

The greenback struggled to extend its recent positive move that came after the Fed Chair Jerome Powell on Wednesday rejected the idea of negative rates. Adding to this, US President Donald Trump advocated a strong dollar, saying that it will help the economy during the recovery post coronavirus crisis.

Meanwhile, Friday's GBP modest slide could be attributed to some cross-driven weakness stemming from a modest uptick in the EUR/GBP pair. The shared currency outperformed its British counterpart in the absence of any major disappointment from the flash version of German/Eurozone Q1 GDP prints.

It will now be interesting to see if the GBP/USD pair continues to show some resilience at lower levels or prolongs its recent pullback from the very important 200-day SMA. Given that the pair has already confirmed a bearish break through the double-top neckline support near the 1.2300 mark, the chances of any meaningful recovery look slim.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of monthly Retail Sales figures. The data might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North American session.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2205
Today Daily Change -0.0022
Today Daily Change % -0.18
Today daily open 1.2227
 
Trends
Daily SMA20 1.2388
Daily SMA50 1.2344
Daily SMA100 1.268
Daily SMA200 1.2662
 
Levels
Previous Daily High 1.2242
Previous Daily Low 1.2166
Previous Weekly High 1.2504
Previous Weekly Low 1.2266
Previous Monthly High 1.2648
Previous Monthly Low 1.2165
Daily Fibonacci 38.2% 1.2195
Daily Fibonacci 61.8% 1.2213
Daily Pivot Point S1 1.2181
Daily Pivot Point S2 1.2135
Daily Pivot Point S3 1.2105
Daily Pivot Point R1 1.2257
Daily Pivot Point R2 1.2288
Daily Pivot Point R3 1.2334

 

 

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