GBPUSD direction at key turning point

19. Juli 2021

GBPUSD has dropped to the end of the Fibo setup from 1.4000.

There is few fundamental factors this week for GBP, except for the retail sales data towards the end of the week.
DXY is seen to be climbing further, however the push seems sentimental after a rocky last week.

A strong support is seen in the shaded region, which may call for a reversal to 1.3860 or 1.3900. At 4h the Stoch RSI is in the oversold region asking for a reversal. On a daily lookout however it is in the MID band (47.90 at the time of writing) and could go either way.
If the Pound doesn't show enough strength a fall below the support line would result in a trajectory towards 1.3670 and test further lows.

I would be keeping an eye on the Pound's movement in its current range.