GBP/USD Current price: 1.3650
- BOE’s Governor Bailed cooled speculation of negative rates in the UK.
- December retail sales missed expectations according to BRC estimates.
- GBP/USD is bullish in the near term and could advance beyond the 1.3700 figure.
The British Pound was the best performer against the greenback this Tuesday, with GBP/USD hitting 1.3651, to close the day a handful of pips below the level. The sterling got boosted by Bank of England’s Governor Andrew Bailey, who cooled expectations of negative rates, after noting that they are a controversial issue. He also said that it’s too early to reach any conclusion about the need for future stimulus.
The UK published the December BRC Like-For-Like Retail Sales, which posted a modest 4.8%, missing the expected 7.9% advance and below the previous 7.7%. The country won’t release macroeconomic data this Wednesday.
GBP/USD short-term technical outlook
The GBP/USD pair is on its way to extend the latest advance. The 4-hour chart shows that it has broken above a descendant trend line coming from 1.3703, this month’s high. The pair advanced beyond all of its moving averages, which head just modestly up. The Momentum indicator lacks directional strength around its midline, but the RSI advances around 59, skewing the risk to the upside.
Support levels: 1.3590 1.3540 1.3495
Resistance levels: 1.3670 1.3715 1.3750
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.