- 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
|Today last price||1.3203|
|Today Daily Change||0.0016|
|Today Daily Change %||0.12|
|Today daily open||1.3187|
|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|
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
AUD/USD bulls eye 0.6660 resistance confluence and RBA Interest Rate Decision
AUD/USD bulls take a breather around 0.6620, making rounds to a two-week high amid Tuesday’s sluggish session as Aussie pair traders await the Reserve Bank of Australia’s (RBA) Interest Rate Decision. The quote remains sidelined after rising in the last three consecutive days.
EUR/USD struggles to defend corrective bounce off 1.0700
EUR/USD retreats towards 1.0700 amid the early hours of Tuesday’s Asian session after a volatile day. That said, the Euro pair initially cheered the downbeat US data before paring the gains and closing the day around the week-start levels.
Gold grinds higher past $1,950 amid downbeat United States data
Gold stays on the front foot aroud $1,961, after an upbeat start of the week, as the bullion traders seek more clues to extend the latest rebound during early Tuesday in Asia. The precious metal cheered downbeat United States statistics and dicey markets to regain upside momentum the previous day.
TRX, ADA price fall over 5% as Tron and Cardano founders show support for Binance and CEO
Tron (TRX) and Cardano (ADA) prices are down by more than 5% each as the two altcoins follow in the footsteps of Binance Coin (BNB), which fell 10% after the US Securities and Exchange Commission (SEC) filed a civil complaint against Binance and CEO Changpeng Zhao (CZ).
Reserve Bank of Australia Preview: AUD/USD ready for another hike? Premium
The Reserve Bank of Australia (RBA) is set to announce its monetary policy decision on Tuesday, June 6 at 04:30 GMT. The market consensus is for the central bank to keep its monetary policy unchanged.