GBP/USD Forecast: rally extends as Retail Sales jump
|The GBP/USD pair peaked at 1.2515 earlier in the day, retreating modestly below the 1.2500 threshold, ahead of the release of the UK Retail Sales figures. Data beat expectations, and the upward surprise boosted the Pound. Sales surged by 1.4% in February and when compared with the previous month, while year-on-year sales surged by 3.7%. Excluding fuel, sales also surged, by 1.3% and 4.1% monthly and yearly basis respectively. January figures suffered downward revisions.
The pair extended its advance up to 1.2525 after the news, holding on to gains and poised to continue advancing, particularly if it manages to extend now beyond 1.2540, a Fibonacci resistance, with scope then to extend towards the 1.2570/80 region, en route to 1.2610.Technical readings in the 4 hours chart favor such advance, as the 20 SMA mainaints its bullish slope well below the current level, whilst technical indicators have resumed their advances, now entering overbought territory.
The pair needs to break below 1.2460 to lose the upward potential and turn south, with 1.2425, the 38.2% retracement of the January rally, being the next bearish target.
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