GBP/USD retreats over 50-pips from highs, back below 1.2200 handle

Haresh Menghani FXStreet

Sell on rallies remains the key theme surrounding the British Pound, with the GBP/USD pair retreating over 50-pips from session peak near 1.2230 region.

Currently trading around 1.2175-80 region, the pair managed to staged a goodish recovery on Friday amid prevalent bearish tone surrounding the US Dollar in wake of disappointment from President-elect Donald Trump's first news conference.

The recovery momentum, however, once again lost steam at higher levels as investors remain worried over increasing possibilities of a 'hard Brexit'. Also on Thursday, the pair witnessed a sharp reversal of over 150-pips on news of UK Prime Minister Theresa May's upcoming speech that could unveil her plans for ending Britain's membership with the European Union.

In the meantime, the release of monthly retail sales data, PPI print and Prelim UoM Consumer Sentiment index from the US might provide some impetus for short-term traders during early NA session on Friday.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "A recovery above 1.2210 could see the pair extending its gains up to 1.2280, with further upward momentum exposing 1.2330 a major static resistance level where selling interest is expected to resume. Below 1.2140, the daily low, the decline will likely extend down to 1.2080, whilst beyond this last, 1.2037, the weekly low comes next."

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2306

30% Bullish
30% Bearish
40% Sideways

Bias Sideways

1 Month

Avg Forecast 1.2237

27% Bullish
60% Bearish
13% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.2098

5% Bullish
58% Bearish
37% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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