On Monday the "bears" continue to develop the offensive below 1.2000, and in a moment GBP/USD is approaching the next important level - 1.1900.
At the end of last week the dollar got some support from the US macroeconomic statistics. In particular the volume of new home sales in January went up by 7.2% against the forecast of 2.5%. Personal spending grew by 1.8% and personal income by 0.6% against the expectations of 1.3% and 0.9% respectively.
UK Consumer Confidence which went up from (-45.0) to (-38.0) p. was slightly positive for sterling. The growth of the index indicates some improvement in the British economy, though even to the positive area the index is still far away.
GBP/USD Technical Analysis
Bollinger Band on the daily chart is slightly declining.
The MACD indicator is decreasing in the negative range and holding a sell signal.
Stochastic Oscillator from the top down is testing the 20% level and may soon enter the oversold area.
After the pair has consolidated below the key support at 1.1900, we open a short positions aiming for 1.1700. Stop-loss is set at 1.2000.
Breakdown of resistance at 1.2000 will signal the reversal of the pair to the upward correction. In this case we open an upside buy position for reaching 1.2150. Stop-loss is set at 1.1950.