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 Friday’s 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.
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