FxWirePro: GBP/USD hits 10 month low on weaker than expectd UK retail sales, good to sell on rallies
GBP/USD is trading weak for third consecutive days on account of weak than expected UK data. UK CPI and wage growth data released this week was weaker than expected. Pound hits 10 month low after UK retail sales came at …
GBP/USD is trading weak for third consecutive days on account of weak than expected UK data. UK CPI and wage growth data released this week was weaker than expected. Pound hits 10 month low after UK retail sales came at -0.5% m/m compared to forecast of 0.2%. But quarterly growth in retail sales was best since Feb 2015 on account of good weather and football. The decline in retail sales could dampen expectations of an interest rate rise next month. It hits intraday low of 1.2986 and is currently trading around 1.30041.
Technically near term resistance is around 1.3100 (support turned into resistance) and any convincing break above will take the pair till 1.31500/1.3200 (5- day MA). The pair should close well above 1.3300 on daily basis for bullish continuation.
On the lower side, near term major support is around 1.3000 and any close break below will target 1.2900/1.2850.
It is good to sell on rallies around 1.3015-20 with SL around 1.365 for the TP of 1.2800.
