- Pound's failure to break the 1.2500 resistance leaves the bears in control.
- Strong US retail sales numbers have brought the pair back to the lower part of the monthly channel at 1.2440.
- Below 1.2430, the next support levels are 1.2370 and 1.2220.
The British pound's recovery attempts have not found significant acceptance above Monday's 1.2500 level. The pair has succumbed to the broad-based strength of the US Dollar following the release of encouraging US retail sales figures.
US Consumer spending has exceeded expectations adding to evidence of a strong US economic outlook. Beyond that, growing consensus on the consequences of an escalation in the Middle East conflict is a additional support for the safe haven dollar.
GBP/USD Price Analysis: Technical Outlook
The bears have pulled the pair back to the bottom of the monthly descending channel at 1.2440, which is currently being tested. Last Friday's low is just below, at 1.2430. A clear break of this support zone clears the way towards 1.2370. Below there is no support until 1.2220.
To the upside, the level of 1.2505 should be broken to move towards 1.2565, where an unmitigated order blocking could give new impetus to the bears.
GBP/USD 4-hour chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
