GBP/USD bears are holding up the bullish correction below 1.2050


  • GBP/USD bears are moving in near the lows of the day. 
  • The British Pound is under pressure due to a series of bearish data for the currency. 

GBP/USD is back under pressure in midday US trade after a series of data has kept a lid on attempts to correct the major sell-off that ensued following a round of negative data for cable. At the time of writing, GBP/USD is trading at 1.2005 and down 1.35%, pressured within the day's range of between 1.1989 and 1.2181, retreating from near two-week lows and on course for its sharpest one-day decline this month.

The pair has moved lower to break a seven-day rally against the euro, after a bigger-than-expected drop in UK inflation in January has led investors to believe that the Bank of England might curtail its interest rate hiking cycle. Inflation decelerated to an annual rate of 10.1% in January from 10.5% in December, compared to expectations of 10.3% in a Wall Street Journal survey of analysts.

Then to rub salt in the bull's wounds, the US Dollar climbed to a six-week high against a currency basket on Wednesday after hotter-than-expected US Retail Sales data last month that followed high Consumer Price Index data the prior day. Year-on-year, Retail Sales prices rose 6.4%. That was down from 6.5% in December but above economists' expectations of 6.2%Retail Sales rose 3% in January, easily topping the 1.8% estimate, the Commerce Department reported Wednesday.

''Today’s US Retail Sales data release support risks that the Federal Reserve will have to work harder to curtail demand and bring inflation under control,'' analysts at Rabobank said. 

Investors are starting to have second thoughts as to whether there will be cuts in 2023. Rates currently stand at 4.5% to 4.75% but Fed board members' median projection foresaw interest rates peaking at 5.1% this year. However, interest rate futures markets have still priced a peak above 5.2%, based on late Tuesday's prices.

GBP/USD

Overview
Today last price 1.2005
Today Daily Change -0.0172
Today Daily Change % -1.41
Today daily open 1.2177
 
Trends
Daily SMA20 1.2249
Daily SMA50 1.2186
Daily SMA100 1.1874
Daily SMA200 1.1943
 
Levels
Previous Daily High 1.227
Previous Daily Low 1.2118
Previous Weekly High 1.2194
Previous Weekly Low 1.1961
Previous Monthly High 1.2448
Previous Monthly Low 1.1841
Daily Fibonacci 38.2% 1.2212
Daily Fibonacci 61.8% 1.2176
Daily Pivot Point S1 1.2107
Daily Pivot Point S2 1.2036
Daily Pivot Point S3 1.1954
Daily Pivot Point R1 1.2259
Daily Pivot Point R2 1.234
Daily Pivot Point R3 1.2411

 

 

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