FxWirePro: GBP/USD rallies on strong April UK retail sales data

•  GBP/USD gained sharp momentum after UK retail sales for April surpassed forecasts, strengthening the British pound.

•   UK retail sales rose in April thanks to sunny weather, while consumer confidence improved, providing a rare bright spot amid a weak economy. 

• The Office for National Statistics reported on Friday that retail sales volumes surged 1.2% month-on-month in April, significantly exceeding expectations, following a revised 0.1% rise in March.

• Sterling was further supported   by Britain’s agreement on Monday to the most significant reset of relations with the European Union since Brexit, easing some trade barriers and enhancing defence cooperation while addressing sensitive topics like fishing rights.

• At GMT 12:51, the pound  was up 0.86% to 1.3523 against the US dollar.

•   Immediate resistance is located at 1.3566( 38.2%fib), any close above will push the pair towards 1.3710(23.6%fib)

•  Strong support is seen at 1.3403 (38.2%fib) and break below could take the pair towards 1.3337(May 20th low).

  Recommendation: Good to buy  around 1.3530, with stop loss of 1.3450 and target price of 1.3700