GBPUSD Upside Potential Past 1.3700 Level Stays Optimistic Amid Poor UK Data

GBPUSD Upside Potential Past 1.3700 Level Stays Optimistic Amid Poor UK Data

GBPUSD Price Analysis – January 24

Last week the GBPUSD pair maintained a positive tone and in the previous session, sellers made a fresh attempt to continue selling below 1.3700. The pound was hit by poor UK data as retail sales rose a modest 0.3% mom in December, well below the 1.2% anticipated.

Key Levels
Resistance Levels: 1.4000, 1.3800, 1.3700
Support Levels: 1.3624, 1.3519, 1.3451
GBPUSD Long term Trend: Ranging
GBPUSD is currently trying to find support on the 5 daily moving average around 1.3650 after a reversal from 1.3736 prior sessions high. The rising moving average of 5 continues to support intact bullish price action. However, a convincing breach of the mentioned support can still accelerate the fall to the support zone of 1.3624.

In the long term, the focus remains on the growth side. A sustained breach beyond may validate a long-term bottom at 1.1409. An increase from there can be either a correction or the start of a long-term uptrend. In any event, the next aim is a rebound from 2.1161 to 1.1409 at 1.4000.
GBPUSD Short term Trend: Ranging
The GBPUSD pair rose from the 1.3519 level in the past week and broke the 1.3700 level. But since a temporary high has formed after the initial barrier at 1.3746, the initial bias is bullish initially this week. On the other hand, a break below 1.3624 may aim for a reversal trend from 1.3746 to 1.3451 from 1.2675 to 1.3177 levels.

In such a scenario, short-term sentiment may stay ranging as long as support level 1.3177 remains intact, in a steeper pullback scenario. Meanwhile, some subsequent sell-offs could leave the GBPUSD vulnerable to further slide beneath 1.3500 towards the 1.3300 congestion zone.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.