Forex Trading: GBPUSD Technical Analysis – January 17, 2020

On the last trading day of this week, GBP fell against the USD, after three consecutive days of touching height. The very bad time the GBP had experienced since the beginning of the month, with the ongoing fall itself against the USD but in the last few days, it started to recover itself. Regardless of today’s price drop below the 1,3100, it puts a break in its development. The significant publication has become the reason for the decline of today. Therefore the technical bias remains bearish, as shown in the graph in the last downside movement due to the lower low wave.

GBP/USD: Technical Analysis

The provided graph below indicates the current price of GBPUSD i.e. 1.3048, Although the price of pair declined, it has the assistance of many support levels, the quick support is of 1.2908, the 38.2% Fib level, then it gets the support of trendline on 1.2828, and then it comes to the support of 1.2731, the major horizontal support that is not very far from the price.

GBPUSD

On the upper side, its the trendline resistance of 1.3061, that is just above the price, that makes the possibility that does not allow it to move forward or force it to the backing further, afterward, there is the Fibonacci level of 1.3126, and then at a very large distance there is the major horizontal resistance of 1.3513.

GBP Retail Sales

The annual retail sales that were expected to rise to 2.9 percent, but today’s data disheartened the economist with a reading of just 0.7 percent, the ex-fuel retail sales published by the National Statistics is a measure of improvements in British retail sales except for fuel. It indicates retail sector success in the short term.

Percentage changes are representative of the intensity of such revenue changes. The reforms are widely followed as a business cost estimate. A high reading for the Pound is seen as positive (or bullish) while a low reading is seen as negative (or bearish).

Trade Idea

GBPUSD’s market isn’t sure of its trend, as the graph above portrays it with a mixed rising and fall situation. Current stage investment, therefore, depends on the destiny of the investor, while risk-averse investors should not place their eggs in this basket.

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