Much better-than-expected UK Retail Sales for September sent the GBP/USD pair up to 1.5507, where the pair met again intraday selling interest. The pair has been unable to advance beyond the 1.5500 figure ever since reaching the level last week, following the release of soft inflation data and a firm increase in wages, which point to a continued increase in local consumption, and therefore increase chances of a rate hike.
Retail Sales surprised to the upside, showing its 29th consecutive month of growth, also supporting a tightening in the economic policy. Monthly basis, sales increases by 1.9% against expectations of a 0.3% advance, whilst compared to a year before, the figure jumped to 6.5% against 4.6% expected.
The GBP/USD pair 4 hours chart shows that the price holds near its highs, with a mild bullish tone according to the technical readings, although with no actual bullish trend, given that the pair has been confined to a well-limited range ever since the week started.
At this point, the pair needs to accelerate above 1.5520 to confirm a new leg higher, up to the 1.5560 price zone. Should the price extend further beyond this last, the next probable bullish target comes at 1.5600.
The pair has an intermediate support now at 1.5445, the 61.8% retracement of its latest weekly decline, but dips down to 1.5410/20 have been attracting short term buying interest ever since the week started, which means a break below the level is required to confirm a new leg lower, with 1.5380, the 50% retracement of the same decline as the immediate support, followed then by 1.5335.
View the live chart of the GBP/USD
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