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Technical Analysis GBPUSD : 2021-01-22

Recommendation for GBP/USD:

Strong SellSellNeutralBuyStrong Buy

Below 1.3650

Sell Stop

Above 1.3720

Stop Loss

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Senior Analytical Expert
Articles 1692
RSI Neutral
Donchian Channel Sell
MA(200) Buy
Fractals Sell
Parabolic SAR Sell

Chart Analysis

IFC Markets Tech Analysis

The GBPUSD technical analysis of the price chart on 1-hour timeframe shows GBPUSD: H1 is retracing down toward 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 1.3650. 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 1.3720. After placing the order, the stop loss is to be moved to the next fractal high indicator, 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 rose less than expected in December. Will the GBPUSD retreat continue?

UK retail sales rose less than expected in December: the Office for National Statistics reported UK retail sales rose 0.3% over month in December after 4.1% decline in November, when a 1.4% growth was forecast. This is bearish for GBPUSD.

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