Analysis

Premium analysis by our dedicated team
GBPUSD
Feb 18, 2021, 7:11 PM GMT
#Forex

The Cable Has to Come Down from the Clouds

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?

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
0 66 PIPS Pending Pending
-0.47%
Short Term
+ -
0 66 PIPS
Long Term
+ -
Pending Pending
Net % Gains
-0.47%

Disclaimer: Your capital is at risk! Trading and investing on the financial markets carries a significant risk of loss. Each material, shown on this website, is provided for educational purposes only. A perfect, 100% accurate method of analysis does not exist. If you make a decision to trade or invest, based on the information from this website, you will be doing it at your own risk. Under no circumstances is Trendsharks responsible for any capital losses or damages you might suffer, while using the company’s products and services. For more information read our Terms & Conditions and Risk Disclaimer.