Date : 21st February 2020. GBPUSD – A Bear Trap? 21st February GBPUSD, H4 This pair has been down significantly for two days to a new two-month low at 1.2848, although the UK economic data was relatively positive on both days. On Wednesday (February 19) it was retail prices, PPI and CPI, all of which came out well, and strengthened the GBP for a short time. However, shortly after the key data announcement the pair continued to plummet heavily into and during the US market. Wednesday closed down around 78 pips and Thursday (February 20) was the same, as the UK Retail Sales numbers came out positive. But the pair still closed down more than 35 pips as the Dollar remained dominant. US economic data also came out well on both days, and the US Dollar Index managed to reach an almost 3 year high at 99.79, while Brexit trade negotiations between the UK and the EU began to turn around again. In the case that the UK may have to leave the EU without a deal after the French Finance Minister has come out to comment that “we are separated”. From a technical perspective, the breakout of the support zone yesterday (February 20) at 1.2880 caused the H4 time frame to print signs of a bear trap, which must continue to develop to see if the pair can go up or not. In the Day time frame, yesterday the price came down to test the key support at the EMA 200 line and bounce back up. This makes today’s first support level 1.2880. If the price goes down and is able to pass this level, the next support level will be at yesterday’s low at around 1.2850, but if the price continues to rise there is resistance waiting at 1.2925 and 1.2950. However, today on the economic calendar there is still important economic data waiting. At 16:30, the UK announces PMI numbers for both manufacturing and services. At 21.45 hrs onwards, the United States will announce PMI and monthly home sales figures for January. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Chayut Vachirathanakit Market Analyst – HF Educational Office – Thailand HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.