GBP/USD flat around 1.3170 post-UK retail sales

UK’s retail sales expanded 0.3% MoM in October.
Cable stays unchanged around 1.3170.
Brexit and UK politics remain in centre stage.

Pablo Piovano FXStreet

The Sterling managed to rebound from daily lows vs. the greenback on Thursday, with GBP/USD advancing to the 1.3170/75 band in the wake of UK’s retail sales results.

GBP/USD finds support near 1.3130

Cable met some buying interest after UK’s headline retail sales expanded at a monthly 0.3% in October, reverting the previous monthly contraction. Over the last twelve months, sales retreated 0.3%, less than initially estimated.

Further data saw sales excluding the Fuel component expanding 0.1% inter-month and contracting 0.3% on an annualized basis.

Today’s results add to yesterday’s auspicious prints from the UK labour market, somewhat reverting the disappointing inflation figures seen on Tuesday. Cable in the meantime is looking to extend the weekly upside following Monday’s low in the 1.3060 region, coincident with the near-term support line off August’s lows.

As usual, Brexit negotiations and rising UK political concerns remain poised to drive the sentiment around the British Pound for the time being.

GBP/USD levels to consider

As of writing the pair is gaining 0.02% at 1.3174 and a break above 1.3202 (short term resistance line) would open the door to 1.3232 (high Nov.10) and finally 1.3234 (55-day sma). On the other hand, the immediate support aligns at 1.3119 (100-day sma) seconded by 1.3088 (near term support line) and then 1.3062 (low Nov.13). Further out, FXStreet’s Technical Confluence Index (TCI) notes a strong support area in the 1.3160 region, where coincide the 5-day sma, Bollinger Band, and weekly/monthly Fibo retracements.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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