The GBPUSD has been performing exceptionally well over the last several weeks, consistently beating the odds. The pair has been trading over a multi-year high for over a week now and is currently threading below the psychologically significant resistance at 1.40000. Could this major barrier catalyse the long-awaited bearish correction for the overbought pair?
Looking at the economic calendar for this week, the only thing that could jolt the pair drastically is the British Retail Sales data, which is scheduled for publication on Friday. This comes shortly after yesterday's considerably better-than-expected U.S. retail sales numbers for January. According to the preliminary forecasts, the situation in the U.K. is likely to be markedly different, with consumer confidence remaining quite subdued.
Investors' increased demand for higher-risk has supported GBPUSD's rally securities as of late, which is owing to the historically low yields in the U.S. This trend has been further underpinned by surging energy prices and greatly restrained demand for lower-risk securities, such as gold.
Nevertheless, the timing for a GBPUSD bearish correction seemingly couldn't be better, with the pair getting ahead of itself just as it is due to test the aforementioned psychological barrier. So what is the current technical outlook for the cable?
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