GBPUSD stabilize today after weaker retail sales but seems that the market has already discount much of the weaker economic data. UK Retail Sales came in at -0.3% below the expectations of 0.2% in February. The yearly reading for Retail Sales came in at 0% below the consensus of 0.8%. Excluding fuel, the Retail Sales came in at -0.5%, below the forecasts of -0.2%.
Investors await the Bank of England and the & UK government to resume their coordinated actions on Thursday to prevent the coronavirus outbreak impact from triggering a long and deep recession. Rishi Sunak will announce today a relief package to compensate more than two million workers affected by the coronavirus crisis.
GBPUSD is 0.03% lower at 1.1875, as the pair digest yesterday’s wild move, when in just three hours moved from 1.1940 to 1.1645 and managed to rebound from the daily lows up to 1.1850 in just two hours. The technical outlook is bearish for GBPUSD but shows some signs of stabilization, as the pair exiting the oversold area.
On the upside, first resistance for the pair stands at 1.1893 the daily top. The next resistance area would be met at 1.2123 the high from March 18. A successful break above 0.2123 is likely to open the door for a bigger rally to the next resistance at 1.2270 the high from March 17.
On the downside, support stands at 1.1777 the daily top. In case of a downside break below the $0.1777 support level, the GBPUSD price could correct lower towards the $1.1633 level in the near term, the March 25 low. If GBPUSD continues lower, the next support level would be met at 1.1490 the low from March 24 trading session.