FxWirePro: GBP/USD recovers slightly from early decline but bears are not done yet

• GBP/USD trimmed earlier losses on Friday as upbeat UK retail sales data for September surprised markets, easing concerns over slowing domestic demand.

• UK retail sales unexpectedly rose 0.5% in September, driven by strong tech sales, including Apple’s new iPhones, and higher gold demand from online jewellers, data showed Friday.

• The ONS reported that retail sales rose 0.9% in Q3, up from 0.2% in Q2, likely adding 0.04 percentage points to GDP growth   a positive sign for an economy expected to slow in the second half.

•Separately, business activity showed early signs of recovery, with the preliminary UK Composite PMI from S&P Global indicating modest improvement on Friday.

•The preliminary UK Composite PMI from S&P Global rose to 51.1 in October from 50.1 in September, signaling a modest pickup in growth across the services and manufacturing sectors.

•Futures markets now price in about a 65% chance of a quarter-point BoE rate cut by year-end, down slightly from around 75% before Friday’s data.

•   Immediate resistance is located at 1.3351( 50%fib), any close above will push the pair towards 1.3394(SMA 20)

•  Strong support is seen at 1.3284 (Lower BB) and break below could take the pair towards 1.3268(382%fib).

  Recommendation: Good to sell around 1.3330, with stop loss of 1.3400 and target price of 1.3260