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FxWirePro: GBP/USD gains on upbeat UK retail sales data

GBP/USD strengthened on Friday as solid retail sales offset the impact of geopolitical risks.

• The pair recovered notably from the 1.3455 low, as upbeat UK retail sales data provided a bullish boost to sentiment.

• Even with today’s rebound, soft inflation expectations from the Bank of England could limit sterling’s upside as tensions in the Middle East cool..

• The Bank of England is set to meet on Thursday, with money markets pricing in a rate hike by year-end, though no change is expected at next week’s meeting.

•   Immediate resistance is located at 1.3530(50%fib), any close above will push the pair towards 1.3596(April 17th high)

•  Strong support is seen at 1.3455(Daily low) and break below could take the pair towards 1.3407(SMA20).

  Recommendation: Good to buy around 1.3720, with stop loss of 1.3660 and target price of 1.3800

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