GBP/USD holds steady near 1.2200 despite weaker UK Retail Sales, upside seems limited


Share:
  • GBP/USD gains some positive traction on Friday amid a modest USD downtick.
  • The disappointing release of the UK Retail Sales fails to provide any impetus.
  • A bleak outlook for the UK economy, BoE’s dovish hike favours the GBP bears.
  • The Fed’s hawkish outlook, recession fears support prospects for further losses.

The GBP/USD pair attracts some buying on Friday and recovers a part of the previous day's heavy losses to a one-week low. The pair sticks to its modest intraday gains above the 1.2200 mark through the early European session and moves little following the release of the UK macro data.

The UK Office for National Statistics reported that Retail Sales dropped by 0.4% in November against the anticipated growth of 0.3% and the 0.9% increase recorded in the previous month. Furthermore, sales excluding the auto motor fuel unexpectedly fell by 0.3% MoM as compared to the 0.7% rise in October. The data validates a bleak outlook for the UK economy, which, along with a dovish 50 bps rate hike by the Bank of England on Wednesday, supports prospects for some meaningful downside for the GBP/USD pair.

That said, signs of stability in the equity markets prompt some selling around the safe-haven US Dollar and lend support to spot prices, at least for the time being. Meanwhile, the Fed struck a more hawkish tone on Wednesday and signalled that it will continue to raise rates to crush inflation. This, along with looming recession risks, favours the USD bulls and adds credence to the negative outlook for the GBP/USD pair. Hence, any further move up could be seen as a selling opportunity and remain capped.

Friday's economic docket also features the release of the flash PMI prints from the UK and the US. This, along with the broader risk sentiment, will influence the USD price dynamics and provide some impetus to the GBP/USD pair. Nevertheless, spot prices remain on track to register modest losses for the first time in seven weeks and settle well below a six-month high touched on Wednesday.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2211
Today Daily Change 0.0033
Today Daily Change % 0.27
Today daily open 1.2178
 
Trends
Daily SMA20 1.2131
Daily SMA50 1.1711
Daily SMA100 1.1675
Daily SMA200 1.2105
 
Levels
Previous Daily High 1.2434
Previous Daily Low 1.2156
Previous Weekly High 1.2345
Previous Weekly Low 1.2107
Previous Monthly High 1.2154
Previous Monthly Low 1.1147
Daily Fibonacci 38.2% 1.2262
Daily Fibonacci 61.8% 1.2328
Daily Pivot Point S1 1.2078
Daily Pivot Point S2 1.1978
Daily Pivot Point S3 1.18
Daily Pivot Point R1 1.2356
Daily Pivot Point R2 1.2534
Daily Pivot Point R3 1.2634

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD extends slide under 1.0900, hits one-week lows

EUR/USD extends slide under 1.0900, hits one-week lows

EUR/USD dropped further during the American session and reached a one-week low under 1.0900. The pair has turned negative for the week, with the US Dollar recovering further despite mixed US data and risk appetite. 

EUR/USD News

GBP/USD extends slide towards 1.2600 as Dollar strengthens

GBP/USD extends slide towards 1.2600 as Dollar strengthens

GBP/USD slid towards the 1.2600 region, retreating almost a hundred pips from daily highs. The pair weakened further after the release of US consumer inflation and Jobless Claims data. The US Dollar gained momentum boosted by higher Treasury yields. 

GBP/USD News

Gold eases as investors rush away from safety

Gold eases as investors rush away from safety

Financial markets turned optimistic after US inflation eased further in November. Speculative interest increases bets of a shift in central banks' monetary policy. XAU/USD is in a bearish corrective decline in the near term, slide should remain limited.

Gold News

Kyber exploiter asks for complete control of all assets after nearly $50 million exploit

Kyber exploiter asks for complete control of all assets after nearly $50 million exploit

Kyber Network, a cross-chain decentralized exchange and aggregator, was hit by an exploit that drained nearly $50 million in cryptocurrencies from its liquidity pools. The exploiter contacted the team, asking them to await a statement concerning a “potential treaty.”

Read more

Salesforce rally helps Dow Jones outpace NASDAQ, S&P 500 on Thursday

Salesforce rally helps Dow Jones outpace NASDAQ, S&P 500 on Thursday

Salesforce (CRM) is the main story on Thursday. The enterprise software company utilized artificial-intelligence-based (AI) integrations in its product suite to grow profits and revenue for the third quarter.

Read more

Forex MAJORS

Cryptocurrencies

Signatures