GBP/USD Continues Downtrend, Reaches Six-Week Low and Focuses on Key Support at 1.1920

The GBP/USD pair is struggling and has fallen to a 1.5-month low near 1.1950 on Friday,

Arslan Butt•Friday, February 17, 2023•1 min read

The GBP/USD pair is struggling and has fallen to a 1.5-month low near 1.1950 on Friday, extending losses from the previous three sessions. The pair has broken a six-week ascending trend line and is under pressure from bearish MACD signals.

However, the RSI (14) indicates that the pair is near oversold levels, suggesting a potential period of consolidation before further downside. In this context, an upward-sloping support line from November 17, 2022, around 1.1920 by press time, is an important level to watch for a potential rebound.

If GBP/USD remains bearish below 1.1920, it could see a decline toward the previous monthly low of 1.1841, with 1.1900 acting as additional support.

On the upside, the previous support line from early January and the descending trend line from Tuesday form a key hurdle around the psychological level of 1.2000, which must be overcome for the pair to correct higher. Further resistance may come at the 50-SMA level near 1.2080.

Meanwhile, most UK data has been disappointing, and there are pessimistic expectations for the upcoming British Retail Sales report for January, which is due at 07:00 GMT on Friday. The market consensus expects a -0.3% MoM figure, which is an improvement from the previous reading of -1.0%.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.