GBP/USD Forecast: Near-term support holds, fundamentals point to additional gains
The British pound has started the last day of the week on the back foot pressured by the disappointing Retail Sales data from the UK, which showed a contraction of 0.2% in September vs the market expectation for an increase of 0.5%. Nevertheless, the upbeat October PMI figures seem to be helping the GBP stay resilient against the dollar.
IHS Markit reported on Friday that the economic activity in the UK's private expanded at a stronger pace in early October than it did in September with the Manufacturing PMI and the Services PMI improving to 57.7 and 58, respectively. Read more...
GBP/USD outlook: Cable eases further after downbeat UK Retail Sales
Cable remains in red in early Friday following Thursday’s bearish close after larger bulls lost traction on approach to 200DMA (1.3848). Return below broken 100DMA (1.3798) and Fibo 76.4% barrier (1.3794) adds to initial signal of stall and shift near-term focus lower.
Weaker than expected UK retail sales data (Sep 0.2% vs 0.5% f/c m/m; -1.3% vs -0.4% f/c y/y) increased pressure on pound, warning of corrective pullback after the pair hit new one-month high (1.3834) earlier this week. Rapid loss of bullish momentum on daily chart and stochastic reversing from overbought territory support scenario, but rising thick weekly cloud continues to underpin the action, with cloud top (1.3694) offering solid support. Read more...
GBP/USD remains confined in a range around 1.3800 mark
The GBP/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses, around the 1.3800 mark through the mid-European session.
The pair witnessed some intraday selling and dropped to two-day lows near the 1.3770 area in reaction to dismal UK Retail Sales figures, which unexpectedly dropped by 0.2% in September. Excluding the auto motor fuel sales, the core retail sales decline by -0.6% MoM and added to signs of weakness in the economic recovery.
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