November 16, 2021

US Retail Sales Data Will Be Focused On GBP/USD

 Checking on the GBP/USD price movement chart, the price is seen to remain moving horizontally and slowly above the support zone at 1.34000 in the opening trading session of the week (Monday).

The price movement pattern is still witnessing a bearish trend although the price gave an early signal for a trend change after the price traded above the Moving Average 50 (MA50) barrier level.

As expected, the price will need to first test and overcome the resistance trendline to show a clear shadow of the surge for the price to continue to make more drastic increases.

Investors are still waiting for the latest news on the post -Brexit that could further boost the movement of the Pound after receiving some good news in yesterday's talks.

The rising number of Covid-19 outbreaks that have re-emerged in the United Kingdom is also haunting markets that are still affected by the dovish measures implemented by the central bank of England (BOE).

Meanwhile, the main focus of investors is the release of United States (US) retail sales data which will be published in the New York session tonight and is expected to have a big impact on price movements.

If the price on the GBP/USD chart shows a bearish momentum again, for the first time the 1.34000 support zone will remain the target to be broken before declining to lower levels.

A significant decline will see the price heading to the lowest level of 2021 recorded last week around 1.33600 to continue to maintain the 4 -week bearish trend continuously.

If the price movement manages to show a surge, the resistance trendline is expected to be the focus of investors to overcome which could potentially test the SBR (support become resistance) zone at 1.35000.

A more aggressive surge is likely to head to the next SBR zone of 1.36000 which is likely to see a significant upward trend.