- The GBP/USD pair could be attracted by the median line (ml).
- The USD ignored the US retail sales data.
- The sell-off is natural after its amazing growth.
The GBP/USD price is trading at 1.2438 while writing. It seems to be under strong selling pressure after breaking the 1.2450 level. The downside move occurred despite the worse-than-expected US retail sales data.
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Yesterday, the US PPI, Core PPI, and Unemployment Claims came in worse than expected, weakening the US Dollar. On the other hand, the UK GDP, Goods Trade Balance, Industrial Production, and Manufacturing Production indicators reported poor data.
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Today, the US retail sales data came in worse than expected. However, the USD ignored the figures and rallied amid profit-taking at the oversold levels.
Retail Sales reported a 1.0% drop versus the 0.4% drop estimated, while Core Retail Sales registered a 0.8% drop compared to the 0.8% forecast.
In the short term, the greenback tries to appreciate against rivals as the US Industrial Production and Capacity Utilization Rate came in better than expected.
Still, it remains to be seen how the GBP/USD pair reacts after the Prelim UoM Consumer Sentiment is released. This is seen as a high-impact event and could bring more action.
GBP/USD price technical analysis: Bearish pressure
Technically, the GBP/USD pair slipped after failing to stabilize above the 1.2525 resistance. The sell-off is natural after the last leg higher.
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As you can see on the 4-hour chart, the price retested the 1.2521 – 1.2525 resistance levels, registering only a false breakout with great separation signaling strong downside pressure.
As long as it stays below the upper median line (uml), the median line (ml) could attract the price. The weekly pivot point of 1.2400 stands as a potential downside target and obstacle.
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