GBP/USD prepares for another round of sell-off

FXstreet.com (Moscow) - GBP/USD came closer to the lower limit of 1.6330-1.6375 range, where it sits from Thursday morning.

Will we get 5th disappointment from the UK?

After a two-day pause in economic releases we will finally get quite interesting report out of the UK. Retail sales are expected to show the rise by 0.5% mom and 2.5% yoy, but considering the recent developments we may get some disappointments here. January was not that good for the Pound, as it brought four pessimistic reports in a row raising doubts about the sustainability of the UK recovery. If this time we learn that consumers reduced the spending, wait for a new round of sell-off with the initial target at 1.6318 support level followed by 1.6281 if broken.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6351, with support below at 1.6318 (S1), 1.6281 (S2) and 1.6248 (S3), with resistance above at 1.6388 (R1), 1.6421 (R2), and 1.6458 (R3). Hourly Moving Averages are bearish, with the 200SMA at 1.6417 and the daily 20EMA bearish at 1.6410. Hourly RSI is neutral at 45.

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