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GBP/USD Price Forecast – British Pound Suffers Retail Sales Shock

The British pound pulled back after initially trying to rally during Friday as the retail sales numbers were miserable in the United Kingdom. That being said, we are still very much in an uptrend and it will be interesting to see whether or not we can continue.
Christopher Lewis
GBP/USD Price Forecast - British Pound Suffers Retail Sales Shock

The British pound initially tried to rally during the trading session on Friday but found enough resistance to the 1.31 level to turn around and roll over. This was exacerbated by the retail sales figures that came out much weaker than anticipated, so therefore it should be noted that we pulled back to the 50 day EMA. The question now is whether or not it can hold? So far, it looks as if it’s going to and it should also be noted that the 1.30 level underneath should continue to offer plenty of support. After all, it was the resistance at the top of the bullish flag that previously sent this market higher.

GBP/USD Video 20.01.20

When you zoom out, you can make out an argument for a bit of a triangle, and therefore it’s likely that we could see the market make a bigger move, and that would make sense considering that the United Kingdom is currently in the midst of negotiating its exit from the European Union. If that’s still going to happen, then people will start to look at the terms of the deal and the politics involved in order to trade the British pound. In short, this is a market that is grinding higher but it’s going to behave very much like it did last year, only with more of an upward bias than anything else, all things being equal. In other words, this is a market that is going to remain very choppy and cause a lot of headaches going higher.

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