GBP/USD analysis: UK Retail sales may surprise to the upside
|GBP/USD Current price: 1.2299
The GBP/USD pair closed the day little changed around 1.2300, mostly indifferent to developments outside the UK. Pound traders are still trying to asset the implications of latest PM May speech, in which she confirmed the government's choice of a "hard-Brexit," but with the most conciliatory tone ever. The absence of macroeconomic releases helped keep the pair subdued intraday, with market's attention now focusing in the UK December Retail Sales, to be released this Friday. Retail Sales are expected to show some tepid growth during the month, although latest data coming from earnings reports from retailers, anticipate an upward surprise, which could boost the Sterling, at least in the short term. The pair is currently in a short term consolidative phase according to the 4 hours chart, with the upside limited by the 200 EMA around 1.2330, and the RSI indicator flat around 56, but the 20 SMA maintaining its upward slope below the current level, limiting chances of a strong downward move. In the same chart the Momentum indicator has retreated sharply within positive territory, rather reflecting the lack of direction than suggesting an upcoming bearish move.
Support levels: 1.2260 1.2225 1.2190
Resistance levels: 1.2330 1.2375 1.2415
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