GBP/USD analysis: UK Retail Sales could push the pair up to 1.4000

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3879

GBP/USD still unable to clear the 1.3900 level, but bullish.
Lack of dollar's demand fueling the pair's advance.

The GBP/USD pair hovers around the 1.3900 level without being able to clear it, after trading as low as 1.3804 early Asia, amid a short-lived dollar's rally. The greenback lost its shine after the European opening as it keeps happening these last few days, with the GBP/USD pair's advance extending after mixed US data The pair peaked at 1.3912, but quickly returned to levels sub-1.39. The UK is set to release December Retail Sales this Friday, expected down 0.6% monthly basis, while the annual figure is seen coming in at 3.0% from the previous 1.6%. The pair maintains its positive stance according to technical readings in the 4 hours chart, as it stands firmly above a bullish 20 SMA, while the Momentum indicator extends its advance within positive territory, and the RSI indicator consolidates around 67. The pair still has room to extend its gains up to the critical 1.4000 figure, particularly if Friday UK's data beat expectations.

Support levels: 1.3840 1.3800 1.3770

Resistance levels: 1.3900 1.3945 1.3990

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.

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