• GBP/USD slipped lower on Friday following unexpectedly weak UK retail sales data for December.
• British retail sales unexpectedly declined in December, raising concerns about a potential economic contraction in the fourth quarter..
• Retail sales at the start of December dropped by 0.3% month-on-month, following a downwardly revised 0.1% growth in November, according to the Office for National Statistics.
• Technical signals are strongly bearish as RSI is at 30, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.2266( 38.2%fib), any close above will push the pair towards 1.2317 (Jan 15th high)
• Strong support is seen at 1.2135(23.6% fib) and break below could take the pair towards 1.2056 (Lower BB).
Recommendation: Good to sell around 1.2220 with stop loss of 1.2330 and target price of 1.2120
