GBP/USD Outlook (25 January 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke below the key level of 1.37.

The UK Retail Sales m/m data (Actual: 0.3%, Forecast: 1.4%, Previous: -4.1% revised from -3.8%) released last Friday indicated an increase in consumer spending in December.

Also, the UK flash PMI data released last Friday indicated a steep contraction in the services sector in January while the manufacturing sector slowed down in expansion.

• Flash Manufacturing PMI (Actual: 52.9, Forecast: 53.5, Previous: 57.5 revised from 57.3)
  
• Flash Services PMI (Actual: 38.8, Forecast: 45.2, Previous: 49.4 revised from 49.9)
  

Currently, GBP/USD is moving towards the key level of 1.37. Its next support zone is at 1.34800 and the next resistance zone is at 1.37800.
Look for selling opportunities of GBP/USD if it fails to break above the key level of 1.37.