GBP/USD: Bulls cheer strong UK retail trade, 1.3200 eyed?

Dhwani Mehta FXStreet

The GBP/USD pair is extending upbeat UK retail sales data inspired gains in the European session, now aiming for a break above 1.32 handle ahead of the US economic releases.

GBP/USD storms through 20-DMA and beyond

Currently, GBP/USD rallies +0.95% to 1.3165, having posted fresh nine-day highs at 1.3172 last hour. The cable witnessed more-than one big figure rally after the pound was lifted across the board on stronger-than expected UK retail volume data.

Retail sales rose 1.4% m/m in July from a 0.9% fall the previous month, which was significantly better than the flat reading expected.

Moreover, a dramatic turnaround in the risk conditions after the European stocks turned positive also boosted the demand for higher-yielding currencies such as the GBP.

Next on tap for the major remains the US unemployment claims and regional manufacturing index due for release in the NA session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3220 (50-DMA), above which 1.3250 (psychological levels) would be tested. On the flip side, support is seen at 1.3096 (20-DMA) below that at 1.3036 (daily pivot).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold falls to near $5,100 as inflation fears weigh amidst Middle East conflict

Gold price faces some selling pressure near $5,100 during the early Asian session on Wednesday. The precious metal falls amid a renewed US Dollar demand and dimming prospects for US rate cuts. The US ISM Services Purchasing Managers Index report will be published later on Wednesday.