The GBP/USD pair held above the 1.4300 level for most of this Friday, having met some selling interest on a move down to 1.4296. The pair is unable to rally, in spite of better-than-expected Retail Sales in the UK, as the January figures showed a 2.3% growth compared to a month before, whilst the year-on-year reading printed a whopping 5.2%. Previous month readings however, were sharply revised lower.
In fact, and after spiking up to a daily high of 1.4340, the pair retreated on some dollar's demand, accelerating below the 1.4300 level after triggering stops. The Pound is also being weighed by concerns over the outcome of the ongoing EU summit, in which the countries are discussing British demands to remain in the region.
Technically, the 4 hours chart shows that the price failed to advance around a bearish 20 SMA, while the technical indicators turned south, entering negative territory and supporting some additional declines towards the 1.4250 region. If this last level is broken, the pair will likely accelerate further towards the 1.4190 level. Advances up to the daily high should be seen as selling opportunities, with only an advance beyond 1.4350 required to see a more constructive scenario for the Pound.
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