• UK monthly retail sales figure fall short of expectations and prompted some selling.
• Brexit speculations continue to support the Pound and helped limit deeper losses.
The GBP/USD pair extended its intraday decline and dropped fresh session lows, around the 1.2930-25 region post-UK macro data, albeit quickly recovered few pips thereafter.
The pair struggled to build on the previous session's strong up-move to the key 1.30 psychological mark, or two-month tops and witnessed some profit-taking on the last trading day of the week. The bearish pressure remained unabated following the release of UK monthly retail sales figures that recorded a larger than expected drop of 0.9% m/m in Dec.
Adding to this, core retail sales (which exclude fuel prices) also missed expectations and fell 1.3% m/m during the reported month, with the yearly rates unexpectedly falling to show a 3.0% and 2.6% growth respectively as compared to 3.6% and 3.9% expected.
However, expectations for an extension of Article 50, despite repeated denials by the UK government, and the market stance of a diminishing hard Brexit risk continued extending some support to the British Pound and helped limit deeper losses, at least for the time being.
Technical levels to watch
GBP/USD
Overview:
Today Last Price: 1.2942
Today Daily change: -45 pips
Today Daily change %: -0.354%
Today Daily Open: 1.2988
Trends:
Daily SMA20: 1.275
Daily SMA50: 1.2752
Daily SMA100: 1.2892
Daily SMA200: 1.3099
Levels:
Previous Daily High: 1.3002
Previous Daily Low: 1.2832
Previous Weekly High: 1.2866
Previous Weekly Low: 1.2704
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Daily Fibonacci 38.2%: 1.2937
Daily Fibonacci 61.8%: 1.2897
Daily Pivot Point S1: 1.288
Daily Pivot Point S2: 1.2771
Daily Pivot Point S3: 1.271
Daily Pivot Point R1: 1.3049
Daily Pivot Point R2: 1.311
Daily Pivot Point R3: 1.3219
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