GBP/USD headed to congestion resistance at February/March range trade at 1.2580? - Scotiabank
|Analysts at Scotiabank explained that GBP/USD is trading back above 1.25, putting yesterday’s event behind it and focusing intently on today’s stronger than expected retail sales (+1.3% ex autos versus -0.2% in Jan and +0.3% expected for last month).
Key Quotes:
"The resilience of the UK consumer has been doubted amidst rising prices and stagnant wages but there is little sign of consumers backing away."
"The CBI’s retail survey for March suggested strength persisted this month; the CBI’s total distributive reported sales index rose to 32, from 20 in February."
"Cable gains through 1.24 this week (40-day and 100-day MA converge at 1.2410/1.2417 respectively, bottom chart) are looking a little more secure this morning. Gains are supported by a positive alignment of the shorter-term trend signals."
"Congestion resistance from the February/March range trade at 1.2580 may provide a more obvious block on gains in the short run."
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