The GBP/USD pair slipped to the 1.3900 handle in reaction to disappointing UK retail sales data but quickly rebounded back to post-Brexit highs.
The British Pound lost some ground after data released from the UK showed monthly retail sales posted its weakest reading since 2010, contracting 1.5% m-o-m in December.
Meanwhile, the yearly rate also missed consensus estimates and came in to show a growth of 1.4% as against 3.0% expected.
Adding to the disappointment, core retail sales also contracted by 1.6% m-o-m and the yearly rate decelerated to 1.3% during the reported period.
Despite the weaker readings, persistent US Dollar weakness, led by worries over a possible US government shutdown, helped the pair to quickly bounce off lows and refresh daily tops, near mid-1.3900s.
Mario Blascak, European Chief Analyst at FXStreet writes: “Technically the GBP/USD busted the resistance at $1.3850 representing 61.8% Fibonacci retracement line of post-Brexit slide lower. Although GBP/USD initially failed to close above that key resistance line on Wednesday, its ride higher continued over Thursday with no barrier between the current spot and the round big figure of $1.4000.”
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.