GBPUSD appears to have found support around 1.239 after rebounding 60 pips from this level. However, the currency pair faces challenges as recent UK retail sales data and technical indicators suggest a bearish sentiment.
GBPUSD recently experienced disappointing retail sales figures from the UK, which came in at 0.0%, falling short of the forecasted 0.3%. While this figure is an improvement from the previous -0.4%, it still indicates sluggish consumer spending. On the hourly chart, the recent rebound was halted by an inside bar candlestick, suggesting indecision in the market. Additionally, the currency pair has been reluctant to test the upper band of the Bollinger Bands, indicating resistance between the upper and mid bands.
The EMA 50 and 200 further confirm the bearish sentiment, with the EMA 50 positioned below the EMA 200. The widening distance between the two EMAs suggests strong bearish momentum.
Most oscillator indicators lean bearish for GBPUSD. The MACD is bearish, with the signal line below the 0 level. However, the EMA is pointing upwards, suggesting the bearish momentum may be taking a pause. The RSI remains in the bearish zone but is attempting to test the 60% level. A breakout above this level could indicate a short-term trend reversal.
The next key support levels for GBPUSD are identified at the 123.6% Fibonacci retracement at 1.2373 and the 161.8% Fibonacci retracement at 1.2347. These levels will be crucial for traders to watch for potential breakout or breakdown scenarios.
In summary, GBPUSD's short-term sentiment remains bearish, influenced by sluggish retail sales and technical indicators. Traders should monitor the key support levels and oscillator indicators for potential reversals or continuations in the coming sessions. With the prevailing bearish sentiment, GBPUSD may continue to face challenges in the near term.
Actual 0.0% vs Forecast 0.3% vs Previous 0.1%
Actual 0.2% vs Forecast 0.3% vs Previous -0.4%
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