GBPUSD Forecast | Steeper than forecast decline in UK retail sales bearish for GBPUSD | IFCM New Zealand

Technical Analysis GBPUSD : 2020-05-22

Recommendation for GBP/USD:

Strong Sell
Strong SellSellNeutralBuyStrong Buy

Below 1.2158

Sell Stop

Above 1.2228

Stop Loss

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Senior Analytical Expert
Articles 1522
IndicatorValueSignal
RSI Neutral
MACD Sell
Donchian Channel Sell
MA(200) Sell
Fractals Sell
Parabolic SAR Sell

Chart Analysis

IFC Markets Tech Analysis

On 1-hour timeframe GBPUSD: H1 is declining below the 200-period moving average MA(200) which is rising. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.2158. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.2228. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

UK retail sales fell in April. Will the GBPUSD continue falling?

UK retail sales fell in April more than expected: retail sales dropped in April 18.1% over month after 5.2% decline in March, when 15.8% decline was expected. This is bearish for GBPUSD.

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