The pound clawed back some losses after January’s retail sales beat expectations. A fall below 1.1970 has invalidated the rebound and put buyers under renewed pressure. As the cable tests the demand zone above this year’s low of 1.1850, the RSI’s double dip into the oversold area attracted some bargain hunters near 1.1920. 1.2070 is the immediate resistance and stiff selling could be expected around 1.2200-1.2260 as sentiment remains downbeat. A return to the critical level of 1.1850 could trigger a deeper correction.
