GBP/USD remains bid above 1.5334 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, views that GBP/USD is likely to see buying interest so long as it trades above 1.5334 levels, and further gives the outlook for the pair into the UK retail sales data release.

Key Quotes

“The GBP/USD pair fell to an intraday low of 1.5404 levels in the previous session after the renewed Greek concerns hurt the sentiment in the markets. However, the pair has staged a minor recovery to trade above the hourly 50-SMA at 1.5425.”

“The pair also trades above 61.8% Fib expansion level of the move from 1.4988 to 1.5350 and 1.5195 located at 1.5419 levels.”

“The next major trigger comes in the form of the UK retail sales data for Janaury due for release today. The consensus estimates call for a 0.2% contraction on month, down from a 0.4% gain in December, while a 5.9% annualized rise, from the December’s 4.2% rise. A weaker-than-expected print could push the GBP/USD pair lower to 1.5376 (50% fib expansion level).”

“On the other hand, a better-than-expected figure could see the pair re-test 1.5471 (76.4% fib expansion level).”

“Moreover, the pair is likely to see the buying interest on dips so long as it trades above 1.5334 levels, while the outlook would turn bullish based on charts once the pair rises above 1.55 levels.”

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