During Tuesday morning, the GBP/USD currency pair tried to surpass the psychological level at 1.2420.
Latest Fundamental Event Report
The British Pound appreciated against the US Dollar, following the UK Retail Sales data release on Thursday at 08:30 GMT. The GBP/USD exchange currency rate gained 12 pips or 0.10% right after the release. The British Pound continued trading at the 1.2480 level against the Greenback.
The Office for National Statistics released the UK Retail Sales data, which came out better-than-expected of 1.0% compared with the forecast of negative 0.3%.
According to the official release: "In the three months to June 2019, the quantity bought increased by 0.7%, with growth across all sectors except food stores and department stores; however, this was a slowdown from the stronger growth of 1.6% in the three months to May 2019. Online sales as a proportion of all retailing fell to 18.9% in June 2019, from the 19.3% reported in May 2019."
Data from US could cause movements
On the Thursday, the US Core Durable Goods Orders data will be released at 12:30 GMT. Last time, this release caused an eight-pip move in the GBP/USD rate.
On Friday, the US Advance GDP data will be released at 12:30 GMT. The previous data release caused a 22-pip move.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tried to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2479/1.2496 range. During Tuesday's morning, the rate declined to the 1.2420 level.It is expected, that the British Pound could continue to depreciate against the US Dollar in the short term. In this case the currency pair is likely reach the support cluster formed by the weekly S1, the monthly S2 and the Fibo 0.00% in the 1.2387/1.2403.
On the other hand, if bulls prevail in the market, it is likely, that the rate could try to surpass the given resistance cluster. If it does not hold, the pair could reach the 1.2520 level.
Hourly Chart
On the daily candle chart, the dominant descending channel pattern's lower trend line caused the recent surge by providing support. The trend line was also strengthened by the weekly and monthly second support levels.
Meanwhile, note that the daily simple moving averages are far above the currency pair, indicating that the pair is oversold.
Daily chart
On Tuesday, 74% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were once more bullish, as 60% of orders were set to buy.