GBP/USD Current price: 1.3680
- UK Retail Sales resulted much worse than expected amid tough lockdown.
- UK coronavirus strain may be up to 30% more deadly, according to early studies.
- GBP/USD retains its bullish potential despite the latest retracement.
The GBP/USD pair retreated on Friday but was able to close the week with gains at 1.3680. The pound was hit by poor UK data, as December Retail Sales were up a modest 0.3% MoM, well below the 1.2% expected. When compared to a year earlier, sales grew 2.9% missing expectations of 4%. Additionally, Public Sector Net Borrowing in the same month increased by more than anticipated to £33.375 billion.
Also, Prime Minister Boris Johnson said that early evidence suggests the UK coronavirus variant may be more deadly, with some studies suggesting it could be up to 30%. The increased transmissibility and a higher death rate somehow anticipate tougher restrictive measures for longer, not only in the UK. The UK has an empty macroeconomic calendar this Monday, with the focus shifting to employment figures to be out on Tuesday.
GBP/USD short-term technical outlook
The GBP/USD pair retains its bullish tone in its daily chart as it continues developing above a bullish 20 SMA, which advances above the longer ones. Technical indicators remain within positive levels but lack directional strength. In the 4-hour chart, the pair is neutral-to-bullish as it’s trading around a bullish 20 SMA while above the larger ones, while technical indicators hover directionless around their midlines.
Support levels: 1.3670 1.3620 1.3585
Resistance levels: 1.3745 1.3790 1.3830
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD hovers near 1.0700 ahead of US data
EUR/USD struggles to build on Wednesday's gains and fluctuates in a tight channel near 1.0700 on Thursday. The US Dollar holds its ground following the Fed-inspired decline as market focus shifts to mid-tier US data releases.
GBP/USD holds steady above 1.2500 following Wednesday's rebound
GBP/USD stays in a consolidation phase slightly above 1.2500 on Thursday after closing in the green on Wednesday. A mixed market mood caps the GBP/USD upside ahead of Unit Labor Costs and Jobless Claims data from the US.
Gold retreats to $2,300 despite falling US yields
Gold stays under bearish pressure and trades deep in negative territory at around $2,300 on Thursday. The benchmark 10-year US Treasury bond edges lower following the Fed's policy decisions but XAU/USD struggles to find a foothold.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.