GBP/USD Is Technically Bearish But Still Has A Chance To The Upside

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GBP/USD Current price: 1.3850

• Former politician Nigel Farage revived tensions with France and the EU.
• UK BRC Like-For-Like Retail Sales are foreseen up 13.1% in July.
• GBP/USD is technically bearish but still has a chance to the upside.

The GBP/USD pair ended Monday with modest losses after bottoming at 1.3845, its lowest since late July. The greenback traded alongside US government bond yields, easing during European trading hours while surging during the American session. Dollar bulls returned with a vengeance, and buying the dollar seems far from over.  

Meanwhile, tensions between the UK and the Eu returned to the spotlight. This time, Nigel Farage, former leader of the UK Independence Party, said that Britain should take control of the migrant crisis, calling for the EU and particularly France collaboration on the issue. Farage said that the only way to end people illegally crossing the Channel is to send migrants back to France. The UK will publish July BRC Like-For-Like Retail Sales on Tuesday, foreseen up 13.1% after advancing 6.7% in the previous month.

GBP/USD short-term technical outlook

The GBP/USD pair met sellers around the daily ascendant trend like that broke last Friday, and reached fresh lows after completing the pullback, usually a sign of an imminent bearish continuation. In the 4-hour chart, the 20 SMA accelerates south above the current level and near the mentioned trend line, providing dynamic resistance at around 1.3890. The longer moving averages are directionless, a handful of pips below the current level, while technical indicators are flat but within negative levels, skewing the risk to the downside.

Support levels: 1.3820 1.3770 1.3715

Resistance levels: 1.3890 1.3940 1.3990

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.