FxWirePro: GBP/USD recovers after better than expected UK retail sales, market eyes BOE
Cable has shown a good spike for the intraday almost 50 pips after better than expected UK retail sales data. But upside is capped due to BOE monetary policy meeting to be held today. The pair is shoing a selling pressur…
Cable has shown a good spike for the intraday almost 50 pips after better than expected UK retail sales data. But upside is capped due to BOE monetary policy meeting to be held today. The pair is shoing a selling pressure at higher levels. UK retail sales jumped unexpectedly in Nov on account of Black Friday. The sales rose 1.1% in month of Nov compared to forecast of 0.4%. The pair declined sharply from the intraday high of 1.34653 and is currently trading around 1.34332.
BOE is expected to hold interest rates unchanged at 0.50 % and any hawkish statement on interest rate will take the cable further up.
On the lower side, near term support is around 1.3300 and any break below will drag the pair to next level till 1.3225/1.3175. Short term bullish invalidation only below 1.30280.
The near term resistance is around 1.3550 and any break above will take the pair to next level till 1.3600/1.3680. The minor resistance is around 1.3500.
It is good to sell on rallies around 1.3500 with SL around 1.3555 for the TP of 1.3300/
