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.

GBP/USD: Daily gains remain capped by 1.3650

GBP/USD leaves behind Monday’s pessimism and advances marginally on Tuesday. Cable’s humble gains, however, appear to have met quite a decent resistance in the 1.3650 zone for now, in a context of a slight selling pressure hovering around the Greenback.

EUR/USD picks some pace, retests 1.1670

EUR/USD advances modestly and revisits the 1.670 zone on turnaround Tuesday. The pair’s slight advance comes after two daily drops in a row and follows the humble decline in the US Dollar, while investors gear up for upcoming US data and the Jackson Hole Symposium.

Gold: Buyers still hold the grip

Gold navigates the middle of its daily range near $4,650 per troy ounce on Tuesday. The lack of clear direction in the yellow metal comes on the back of the widespread cautious tone among market participants, a mildly offered stance in the US Dollar and a marked decline in US Treasury yields across the curve.

Crypto Today: Bitcoin soars past $80K as Ethereum and XRP hold gains

Bitcoin (BTC) is trading above $80,000 on Tuesday. This is the highest level the Crypto King has traded since mid-May, underscoring a positive shift in investors' risk-on sentiment, liquidity conditions and the technical outlook.

Nvidia earnings: A quick look at expectations

The 2026 Q2 earnings season is nearly over for S&P 500 members, with the reporting cycle notably positive. But looming large this week is none other than AI-favorite NVIDIA (NVDA) , whose results will wrap up the reporting cycle for the Magnificent Seven group as well.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.