GBP/USD decline below the 1.3700 mark despite poor US retail sales. Broader risk-off sentiment continues to strengthen the US Dollar. Powell’s speech today is eyed by the investors. The GBP/USD analysis reveals bearishness. Despite disappointing US macro data on Friday, the GBP/USD pair failed to rebound from below 1.3800. Tuesday saw some follow-up selling to the prior day’s deviation from the supply zone of 1.3875-80. After the vacation ended in September, job losses were feared to increase, weighing on the pound sterling. However, the unexpected drop in UK unemployment and higher wage growth data are overshadowed by disappointment over the change in the number of applicants. –Are you interested to learn more about day trading brokers? Check our detailed guide- A risk-off environment also boosted US dollar inflows, which added downward pressure on the GBP/USD pair. The global economic recovery remains threatened by a rapidly spreading Delta variant of Coronavirus. In addition, investor sentiment was affected by falling retail sales in the US, which benefited traditional safe currencies. Overall sales plummeted 1.1% in July, far below the consensus forecast. The market expected a 0.1% increase in major retail sales (excluding automobiles), but actual declines of 0.4% were reported. As a result of the recent COVID-19 outbreak, consumers have become more cautious. Get FREE Forex Signals Now! US Treasury yields have been declining steadily since the Fed’s policy tightening. This could further lower expectations of an early tightening. However, the dollar bulls did not appear to have been hurt by the development of events and instead focused on the generally weaker sentiment of equity traders. Traders are now focusing on a scheduled speech by Fed Chairman Jerome Powell, which will be scrutinized for any clues to the next policy move. These will impact short-term price movements in the US dollar, giving GBP/USD a fresh direction. –Are you interested to learn more about forex signals? Check our detailed guide- GBP/USD technical analysis: 1.3700 to cap gains GBP/USD 4-hour chart analysis The GBP/USD price has dropped below the 20, 50 and 200 SMAs on the 4-hour chart. Moreover, the price has broken below the 1.3800 mark. The price has done 122% on the average daily range today. It indicates that the volatility is quite higher than normal. The price may test the next support at 1.3740 ahead of 1.3700 and then 1.3630. On the upside, 1.3800 will act as a key resistance. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next Mina Price Prediction: MINA Rounding Bottom Pattern Targets $4.34 Nancy Lubale 1 year GBP/USD decline below the 1.3700 mark despite poor US retail sales. Broader risk-off sentiment continues to strengthen the US Dollar. Powell's speech today is eyed by the investors. The GBP/USD analysis reveals bearishness. Despite disappointing US macro data on Friday, the GBP/USD pair failed to rebound from below 1.3800. Tuesday saw some follow-up selling to the prior day's deviation from the supply zone of 1.3875-80. After the vacation ended in September, job losses were feared to increase, weighing on the pound sterling. However, the unexpected drop in UK unemployment and higher wage growth data are overshadowed by disappointment over the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.