• GBP/USD gained some positive traction on Friday amid a broad-based USD weakness.
  • The uptick met with a fresh supply in reaction to disappointing UK Retail Sales figures.
  • The Fed’s hawkish outlook should underpin the USD and cap the upside for the major.

The GBP/USD pair trimmed a part of its intraday gains and retreated to the 1.3200 round-figure mark in reaction to weaker UK macro data.

The pair gained some positive traction during the early part of the trading on Friday and was supported by modest US dollar weakness, though bulls struggled to capitalize on the move. The uptick, however, lacked bullish conviction and ran out of steam near the 1.3225 region. The Bank of England's softer view on the need for further rate hikes turned out to be a key factor that acted as a headwind for the British pound.

The intraday pullback gathered some momentum following the disappointing release of the UK Retail Sales figures, which fell 0.3% in February. This was below market expectations for modest growth of 0.6% and marked a sharp deceleration from the 1.9% rise reported in January. Adding to this, sales excluding fuel declined by 0.7% during the reported month as against the 1.7% growth recorded in January and the 0.5% rise anticipated.

That said, a generally positive risk tone continued undermining the safe-haven US dollar and extended some support to the GBP/USD pair, at least for the time being. The Fed's more hawkish outlook, however, should help limit deeper losses for the buck. This, in turn, suggests that the path of least resistance for spot prices is to the downside. Hence, any positive move is more likely to get sold into and fizzle out rather quickly.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3203
Today Daily Change 0.0016
Today Daily Change % 0.12
Today daily open 1.3187
 
Trends
Daily SMA20 1.32
Daily SMA50 1.3406
Daily SMA100 1.3404
Daily SMA200 1.3584
 
Levels
Previous Daily High 1.3218
Previous Daily Low 1.3157
Previous Weekly High 1.3211
Previous Weekly Low 1.3
Previous Monthly High 1.3644
Previous Monthly Low 1.3273
Daily Fibonacci 38.2% 1.318
Daily Fibonacci 61.8% 1.3194
Daily Pivot Point S1 1.3157
Daily Pivot Point S2 1.3127
Daily Pivot Point S3 1.3097
Daily Pivot Point R1 1.3217
Daily Pivot Point R2 1.3248
Daily Pivot Point R3 1.3278

 

 

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