GBPUSD – no stronger negative impact on downbeat UK retail sales for now but downside risk remains in play
|Pound is attempting to stabilize above 1.3900 handle which was retested after quick fall on UK retail sales miss.
Retail sales numbers disappointed in December (m/m -1.5% vs -0.6% f/c and y/y 1.3% vs 3.0% f/c), softening near-term tone and signaling blow for hawks, looking for BoE rate hike in May.
On the other side, fears of US government shutdown keep the dollar under pressure and partially offsetting negative impact from retail sales miss.
However, risk of pullback exists as daily indicators are overbought, with additional pressure coming from significantly weaker retail sales.
Firm break below 1.3900 and session low at 1.3886 will be negative signal, but further easing and daily close in red is needed to generate firmer bearish signal and sideline immediate bulls.
Conversely, bearish threats will be neutralized on sustained break above peaks at 1.3942/45 (Wed / today) that would signal attack at psychological 1.4000 barrier.
Res: 1.3945; 1.4000; 1.4050; 1.4086
Sup: 1.3904; 1.3886; 1.3854; 1.3804
Interested in GBPUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.