Hi, dear traders!
Earlier today, a large economic statistics report was released in the UK. The CPI and retail prices data was stronger than expected.
Daily
On January 13, a gravestone doji bearish reversal pattern emerged on the daily chart, similar to EUR/USD - it is highlighted above. Bearish traders noted its appearance and pushed GBP/USD down. The strong technical level of 1.3750 also served as a major obstacle for the pair. During yesterday's downward movement, the pair broke below the red Tenkan-Sen line of the Ichimoku cloud, but stopped at the orange 200-day EMA line and closed below 1.3600. GBP/USD has repeatedly failed to return above this level so far, and today's candlestick with its upper shadow could turn bearish. If the pair continues to fall, the next target for bears would be the support 1.3572, which was also yesterday's intraday low. If GBP/USD breaks through 1.3572 and closes below it, the bearish scenario would be confirmed. However, if bullish traders manage to push GBP/USD above 1.3600, the pair would encounter strong resistance at 1.3636, where the red Tenkan-Sen line is located. A bearish reversal candlestick or a pattern near 1.3636 at daily or lower timeframes would serve as a signal for opening short positions. Traders are also advised to consider opening short positions once the pair is near 1.3620.
Good luck!
