GBP/USD Is Technically Bearish With An Immediate Support Level At 1.3820

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GBP/USD Current price: 1.3838

• UK July BRC Like-For-Like Retail Sales were up a modest 4.7% YoY.
• The UK calendar has little to offer this week, focus on US inflation.
• GBP/USD is technically bearish with an immediate support level at 1.3820.

The GBP/USD pair trades near a daily low of 1.3827 after spending most of the day hovering around the 1.3850 level. The pair gave up after Wall Street’s opening and news that the US Senate had approved the infrastructure bill. UK data did not help, as the July BRC Like-For-Like Retail Sales were up a modest 4.7% YoY, missing the expected 13.1% and contracting from 6.7% in the previous month.

On Wednesday, the UK will publish the RICS Housing Price Balance, seen up in the month 79.3% from a previous 83%. The focus will be US inflation data and how it could affect future decisions on monetary policy.

GBP/USD short-term technical outlook

The GBP/USD pair is technically bearish and set to extend its decline. The 4-hour chart shows that the 20 SMA heads firmly lower above the current level, while the price converges with directionless 100 and 200 SMA. In the meantime, technical indicators remain within negative levels, without clear directional strength. The pair will likely extend its decline on a break below 1.3820, the immediate support level.

Support levels: 1.3820 1.3770 1.3715

Resistance levels: 1.3875 1.3920 1.3965

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.