GBP/USD Forecast: At the upper end of its latest range
|GBP/USD Current Price: 1.2877
- UK Retail Sales fell in October, Sterling keeps ignoring macro figures.
- Hopes for a Brexit deal persist ahead of the UK general election.
- GBP/USD neutral-to-bullish, trading at the upper end of its latest range.
The GBP/USD pair has recovered within range, extending its advance to 1.2888 and settling a handful of pips below this last. The movement was directly linked to the dollar’s weakness, as sterling has no reason to run. According to the official data, UK Retail Sales fell by 0.1% MoM in October and increased by 3.1% yearly basis, both missing the market’s expectations. Sales ex-fuel were down by 0.3% in the month, and up by 2.7% when compared to October 2018.
The Brexit front remained quiet ahead of UK general election, with less than one month to go, with speculative interest confident the Conservative Party will gather enough support to pass Boris Johnson’s Withdrawal Agreement. There are no macroeconomic releases scheduled in the kingdom this Friday.
GBP/USD short-term technical outlook
The GBP/USD pair continues to hold above the 23.6% retracement of its latest bullish run, with a neutral-to-bullish stance in the short-term, as, in the 4-hour chart, it´s above its 20 and 100 SMA, which anyway remain directionless. Technical indicators have advanced within positive levels, but lost momentum, now flat, skewing the risk toward the upside without confirming it. The pair would need to break above 1.2920, the immediate resistance, to extend its gains heading into the weekend.
Support levels: 1.2860 1.2820 1.2785
Resistance levels: 1.2920 1.2950 1.2985
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