Much better-than-expected UK Retail Sales for September sent the GBP/USD pair up to 1.5507, where the pair met again intraday selling interest. The pair has been unable to advance beyond the 1.5500 figure ever since reaching the level last week, following the release of soft inflation data and a firm increase in wages, which point to a continued increase in local consumption, and therefore increase chances of a rate hike.
Retail Sales surprised to the upside, showing its 29th consecutive month of growth, also supporting a tightening in the economic policy. Monthly basis, sales increases by 1.9% against expectations of a 0.3% advance, whilst compared to a year before, the figure jumped to 6.5% against 4.6% expected.
The GBP/USD pair 4 hours chart shows that the price holds near its highs, with a mild bullish tone according to the technical readings, although with no actual bullish trend, given that the pair has been confined to a well-limited range ever since the week started.
At this point, the pair needs to accelerate above 1.5520 to confirm a new leg higher, up to the 1.5560 price zone. Should the price extend further beyond this last, the next probable bullish target comes at 1.5600.
The pair has an intermediate support now at 1.5445, the 61.8% retracement of its latest weekly decline, but dips down to 1.5410/20 have been attracting short term buying interest ever since the week started, which means a break below the level is required to confirm a new leg lower, with 1.5380, the 50% retracement of the same decline as the immediate support, followed then by 1.5335.
View the live chart of the GBP/USD
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
AUD/USD eases toward 0.6500 after mixed Australian trade data
AUD/USD is seeing some fresh selling interest in the Asian session on Thursday, following the release of mixed Australian trade data. The pair has stalled its recovery mode, as the US Dollar attempts a bounce after the Fed-led sell-off.
USD/JPY rebounds above 156.00 after probable Japan's intervention-led crash
USD/JPY is staging a solid comeback above 156.00, having lost nearly 450 pips in some minutes after the Japanese Yen rallied hard on another suspected Japan FX market intervention in the late American session on Wednesday.
Gold price stalls rebound below $2,330 as US Dollar recovers
Gold price is holding the rebound below $2,330 in Asian trading on Thursday, as the US Dollar recovers in sync with the USD/JPY pair and the US Treasury bond yields, in the aftermath of the Fed decision and the likely Japanese FX intervention.
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.
The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.