GBP/USD Forecast: now seems poised to reclaim 1.40 mark, UK retail sales in focus
|The GBP/USD pair continued gaining traction through the Asian session on Friday and once again broke through the 1.3900 handle. The pair moved back closer to the post-Brexit highs, touched on Wednesday, and resumption of the US Dollar bearish slide has been one of the key drivers behind the pair's upsurge.
Investors' focus now turns to the next fundamental trigger - UK monthly retail sales data, due to be published today and expected to have fallen 0.6% m-o-m in December. A slightly better-than-anticipated print could trigger a fresh wave of buying interest around the British Pound and pave the way for an extension of the pair's bullish trajectory.
Technically, Thursday's upsurge back above the 1.3835 level marked a fresh bullish breakout and hence, the pair remains poised to head towards reclaiming the key 1.40 psychological mark. With short-term technical indicators pointing to overstretched positions, any subsequent up-move is likely to confront strong barrier near the 1.4065-70 region.
On the flip side, any meaningful retracement now seems to attract fresh bid near the 1.3860 level and hence, any follow-through weakness seems more likely to be limited near the 1.3835 region - resistance break-point now turned important support. A convincing break below the mentioned support might prompt some additional long-unwinding trade and drag the pair back below the 1.3800 handle towards its next support near the 1.3750-40 region.
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