Baxia Markets
April 19, 2024

GBPUSD Faces Resistance Amid Sluggish Retail Sales and Bearish Sentiment

market analysis header imageGBPUSD 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.

Key Takeaways:

  1. GBPUSD rebounds 60 pips from 1.239 support level.
  2. UK retail sales at 0.0%, below forecasted 0.3% but improved from -0.4%.
  3. Inside bar candlestick halts recent rebound on 1-hour chart.
  4. EMA 50 remains below EMA 200, indicating bearish sentiment.
  5. RSI attempts to test 60% level for potential short-term trend reversal.

Key Economic Releases to Watch Today

GBP, Retail Sales

Actual 0.0% vs Forecast 0.3% vs Previous 0.1%

EUR, German PPI

Actual 0.2% vs Forecast 0.3% vs Previous -0.4%


News Article CTA - Trading with Baxia Markets 2024

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

Subscribe by Email