- GBP/USD gained some positive traction on Friday amid a modest USD pullback.
- Dismal UK Retail Sales figures did little to impress bulls or provide any impetus.
The GBP/USD pair held on to its modest intraday gains, albeit retreated few pips from daily tops in reaction to disappointing UK Retail Sales figures.
The pair attracted some dip-buying near the 1.3775-70 region on the last day of the week and moved away from the previous day's swing lows touched in the aftermath of upbeat US macro data. A modest US dollar pullback from three-week tops was seen as a key factor that provided a modest lift to the GBP/USD pair, though the uptick lacked follow-through.
The UK Office for National Statistics reported this Friday that the value of inflation-adjusted sales at the retail level unexpectedly fell 0.9% in August. Adding to this, core sales (excluding fuel) also declined more than anticipated, by 1.2% during the reported month, which acted as a headwind for the British pound and capped the upside for the GBP/USD pair.
On the other hand, firming expectations that the Fed would begin rolling back its pandemic-era stimulus sooner rather than later should continue to lend some support to the greenback. This, in turn, might further collaborate to keep a lid on any meaningful gains for the GBP/USD pair, warranting some caution for aggressive bullish traders.
Market participants now look forward to the release of the Prelim US Michigan US Consumer Sentiment Index, due later during the early North American session. This, along with the broader market risk sentiment and the US bond yields, might influence the USD price dynamics and produce some short-term trading opportunities around the GBP/USD pair.
Technical levels to watch
|Today last price||1.3807|
|Today Daily Change||0.0013|
|Today Daily Change %||0.09|
|Today daily open||1.3794|
|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|
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.