GBP/USD remains confined in a range, just above 1.2200 mark post-UK retail sales


  • GBP/USD lacked any firm directional bias and oscillated in a narrow range on Friday.
  • Escalating US-China tensions benefitted the safe-haven USD and capped the upside.
  • Slightly weaker-than-expected UK retail sales did little to provide any fresh impetus.

The GBP/USD pair extended its sideways consolidative price action and remained confined in a narrow trading band post-UK macro data.

The pair continued showing some resilience below the 1.2200 mark, albeit struggled to gain any meaningful traction amid reviving safe-haven demand for the US dollar. Worsening US-China relations and fears about the second wave of coronavirus infections overshadowed the recent optimism over the re-opening of economies globally.

Meanwhile, the incoming disappointing macro data, the UK retail sales figures being the latest, has been illustrating the extent of the economic damage caused by coronavirus-induced lockdowns. This, in turn, weighed on investors' sentiment and benefitted the greenback's relative safe-haven status against its British counterpart.

According to data released this Friday, the UK monthly retail sales plunged 18.1% MoM in April as compared to a 16% fall expected and 5.1% decline recorded in the previous month. The core retail sales, excluding auto motor fuel sales, also came in slightly weaker-than-anticipated and dropped 15.2% during the reported month.

The data, however, did little to provide any meaningful impetus as investors now seemed to await a fresh catalyst before positioning for the next leg of a directional move. In the meantime, the broader market risk sentiment might continue to influence the USD price dynamics and produce some short-term trading opportunities.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2216
Today Daily Change -0.0007
Today Daily Change % -0.06
Today daily open 1.2223
 
Trends
Daily SMA20 1.2344
Daily SMA50 1.2276
Daily SMA100 1.2632
Daily SMA200 1.2666
 
Levels
Previous Daily High 1.225
Previous Daily Low 1.2186
Previous Weekly High 1.2438
Previous Weekly Low 1.2102
Previous Monthly High 1.2648
Previous Monthly Low 1.2165
Daily Fibonacci 38.2% 1.221
Daily Fibonacci 61.8% 1.2225
Daily Pivot Point S1 1.2189
Daily Pivot Point S2 1.2156
Daily Pivot Point S3 1.2125
Daily Pivot Point R1 1.2253
Daily Pivot Point R2 1.2283
Daily Pivot Point R3 1.2317

 

 

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