• GBP/USD struggled to gain any meaningful traction and remained confined in range.
  • Upbeat UK Retail Sales data also did little to impress traders or provide any impetus.
  • COVID-19 jitters and the risk-off mood held back bulls from placing aggressive bets.

The GBP/USD pair held steady around the 1.3320 region through the early European session and had a rather muted reaction to the UK macro data.

A combination of diverging forces failed to provide any meaningful impetus to the GBP/USD pair and led to a subdued/range-bound price move on the last trading day of the week. The Bank of England delivered a surprise rate hike on Thursday, which, in turn, was seen as a key factor that underpinned the British pound. Apart from this, better-than-expected UK Retail Sales data extended some support to the major amid the prevalent US dollar selling bias.

The UK Office for National Statistics reported that the total value of inflation-adjusted sales at the retail level increased 1.4% in November. This was well above consensus estimates for a reading of 0.8% and 1.1% rise reported in the previous month. That said, worries about the economic risks stemming from the Omicron outbreak held back bulls from placing aggressive bets and kept a lid on any further gains for the GBP/USD pair, at least for now.

Meanwhile, the USD prolonged the post-FOMC retracement slide from the vicinity of a 16-month high and remained on the defensive through the first half of the trading on Friday. This, in turn, acted as a tailwind for the GBP/USD pair. Meanwhile, the risk-off impulse in the markets and the Fed's hawkish outlook extended some support to the safe-haven greenback. This, in turn, warrants some caution before positioning for any further appreciating move.

It is worth recalling that the Fed on Wednesday announced that it would double the pace of tapering to $30 billion per month. Moreover, the so-called dot plot showed that officials expect to raise the fed funds rate at least three times next year. This, in turn, supports prospects for the emergence of some dip-buying around the greenback.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3318
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.3325
 
Trends
Daily SMA20 1.3293
Daily SMA50 1.349
Daily SMA100 1.3619
Daily SMA200 1.3772
 
Levels
Previous Daily High 1.3374
Previous Daily Low 1.3241
Previous Weekly High 1.3289
Previous Weekly Low 1.3161
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.3324
Daily Fibonacci 61.8% 1.3292
Daily Pivot Point S1 1.3253
Daily Pivot Point S2 1.318
Daily Pivot Point S3 1.3119
Daily Pivot Point R1 1.3386
Daily Pivot Point R2 1.3447
Daily Pivot Point R3 1.3519

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD hovering around 0.7050 amid the greenback’s sell-off

AUD/USD hovering around 0.7050 amid the greenback’s sell-off

The Australian dollar shrugged off negative local data and reached a fresh weekly high against its American rival at 0.7072. The pair preserves its strength, despite the poor performance of global indexes indicating prevalent fear.

AUD/USD News

EUR/USD retains gains and hovers near 1.0600

EUR/USD retains gains and hovers near 1.0600

EUR/USD peaked at 1.0607, now trading in the 1.0580 price zone. The rally was all about the broad greenback’s weakness despite demand for safety continues. Soft US data added to the bullish case.

EUR/USD News

Dollar’s sell-off underpins gold

Dollar’s sell-off underpins gold

Gold is up to on Thursday, trading above $1,840 after hitting an intraday high of $1,849.18. The dollar changed course after soaring on Wednesday and is in franc decline across the FX board. However, action in stock markets is choppy. 

Gold News

Cardano is still on pace to retest $0.40, but bears shouldn't get too excited

Cardano is still on pace to retest $0.40, but bears shouldn't get too excited

Cardano is on professional traders' urgent watchlist as the digital asset could enter a mid-term bottom in the $0.45 zone before rallying upwards towards $0.60. ADA, like several cryptos, has been in a steep bear rally, which demands the need for balance and proportion.  

Read more

Warning signs in China's economic outlook as COVID-19 spreads

Warning signs in China's economic outlook as COVID-19 spreads

New variables both within and outside of China in 2022 have placed the country's economy under new pressure. In the first quarter, its economic growth rate was only 4.8%, which was 0.7 percentage points lower than the annual economic growth target of 5.5%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures