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Technical Bias: Bearish
Key Takeaways:
- Cables keeps falling as bears remain in control
- Buyers wait for bullish signs
- US retail sales data is due tomorrow
The Great Britain Pound (GBP) fell broadly against the US Dollar (USD) last week, dragging GBPUSD to less than even 1.4600 as bears remain in control. The technical bias is bearish due to a Lower Low on daily chart.
Technical Analysis
As of this writing the pair is being traded near 1.4614. A support may be seen around 1.4586, the low of Friday as demonstrated in the following daily chart ahead of 1.4500, the psychological number. A break and daily closing below the 1.4500 support area could incite renewed selling pressure, validating a dip toward s the 1.4000 handle in long term.
On the upside, the pair is expected to face a hurdle near 1.4723, the high of Friday ahead of 1.4950, the confluence of psychological number as well as major horizontal support turned resistance. The technical bias will remain bearish as long as the 1.4950 resistance area is intact.
US Retail Sales
Retail Sales in the United States remained 1.1% in March as compared to -0.6% in the month before, says the average forecast of different economists. Generally speaking, higher retail sales figure is considered positive for the economy and vice versa thus a better than expected actual outcome might spur more selling pressure in the price of GBPUSD. The actual data will be released tomorrow during the US session.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair could be a good strategy in short to medium term if we get a bullish pin bar or bullish engulfing candle near key support areas as described above.
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