GBP/USD analysis: improved UK retail sales not enough to save the Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3386

UK Retail Sales bounced nicely in April after March's slump, but Pound's reaction limited.
UK Q1 GDP second estimate expected to confirm soft growth.

The Sterling Pound surged during European trading hours on the back of better-than-expected UK April Retail Sales, which surprised with a 1.6% monthly rise after falling by 1.1% in March. The yearly figure printed 1.4% vs. the expected 0.1%, while the core readings, excluding fuel prices, were also upbeat. The GBP/USD pair peaked at 1.3421 with the news, to later stabilize below the 1.3400 figure, as despite the greenback lost its charm post-FOMC's Minutes, the Sterling continues struggling to find buyers. There were some rumors at the beginning of the day suggesting that UK PM May would be seeking to extend the transition period for two more years, but they were later denied by governmental sources. The UK will release this Friday the second estimate of Q1 GDP, foreseen unchanged at 0.1%, which would be no good for the UK currency. In the meantime, the short-term picture remains unchanged, with the risk skewed to the downside, given that in the 4 hours chart, the price is unable to advance beyond its 20 SMA, now around 1.3400, while technical indicators hold within bearish territory, the Momentum heading south after failing to overcome its mid-line, and the RSI hovering below its daily high and currently at 45.

Support levels: 1.3365 1.3330 1.3300

Resistance levels: 1.3420 1.3455 1.3490

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.