• GBP/USD prints a new weekly low at 1.3745.
  • Awful UK’s Retail Sales report fails to boost the British pound.
  • The greenback strengthened despite a fall in Consumer Sentiment.

GBP/USD is sliding in the American session to new weekly lows, trading at 1.3754, down 0.26% at the time of writing. As we approach the London Fix and head into the weekend, we could expect some downward pressure on the back of the dampened market sentiment. 

The market sentiment is downbeat. US stocks are losing ground, following the European trend, and bond yields rise as investors turn cautious on the global economic recovery amid worries about the Delta strain and risks from China.

UK Retail Sales disappoint the market

During the European session, the Office for National Statistics reported that Retail Sales shrank 0.9% in August, worse than the 2.5% gain (YoY) foreseen by economists. This negative data adds to concerns about economic recovery, albeit sales volumes remain above pre-pandemic levels.

Across the pond, the University of Michigan Consumer Sentiment rose to 71 in September, a tick lower than the 72.2 expected by analysts. Digging a little deeper on the report, buying conditions for homes, household durables, and vehicles fell. The report said that the declines were attributable to high prices. Consumers expect inflation to rise 4.7% in 2022.

Commenting on the data, Richard Curtin, Surveys of Consumers chief economist noted, "the steep August falloff in consumer sentiment ended in early September, but the small gain still meant that consumers expected the least favorable economic prospects in more than a decade."

Heading into the next week, the Federal Open Market Committee will meet to discuss monetary policy on September 21-22, followed by the Bank of England on September 23. 

Technical levels to watch

GBP/USD

Overview
Today last price 1.3754
Today Daily Change -0.0040
Today Daily Change % -0.29
Today daily open 1.3794
 
Trends
Daily SMA20 1.3782
Daily SMA50 1.3808
Daily SMA100 1.3913
Daily SMA200 1.3834
 
Levels
Previous Daily High 1.3853
Previous Daily Low 1.3765
Previous Weekly High 1.3889
Previous Weekly Low 1.3726
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3798
Daily Fibonacci 61.8% 1.3819
Daily Pivot Point S1 1.3755
Daily Pivot Point S2 1.3716
Daily Pivot Point S3 1.3667
Daily Pivot Point R1 1.3843
Daily Pivot Point R2 1.3892
Daily Pivot Point R3 1.3931

 

 

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