GBP/USD Analysis: Pair Finds Support at Psychological Level
As the GBP/USD chart shows today:
Since the start of the month, the pound has declined by approximately 2.5% against the US dollar.
The 1.2618 level has shifted from support to resistance (as indicated by arrows).
Bearish sentiment has also been fuelled by Fridays UK data (according to Forex Factory):
Retail sales fell by 0.7% month-on-month.
PMI figures came in below analysts expectations.
Technical analysis of the GBP/USD chart offers some optimism for bullish traders:
In the long term, the pair remains within an ascending channel (shown in blue), with the lower boundary potentially acting as support.
The RSI indicator is in oversold territory, suggesting the cheaper pound may attract buyers.
The psychological level of 1.25000 served as support, as the price sharply reversed upwards from it on Friday.
Upcoming US data on Wednesday is likely to have a significant impact on GBP/USD:
16:30 GMT+3: GDP figures.
18:00 GMT+3: PCE Price Index, a key measure of inflation.
Read more: https://fxopen.com/blog/en/oa-gbp-usd-analysis-pair-finds-support-at-psychological-level/
Text source: Forex Trading Blog
