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Forex pairs in this Article » GBP/USD
FXstreet.com (Athens) – The GBP/USD is under a very light pressure on Friday, mostly amidst a light corrective pullback trend, after having gained roughly 200 pips yesterday on the solid support of the UK retail sales coupled with Wednesday’s encouraging labor data.

GBP/USD at a confined range; still the “cable” has yet to confirm EUR/USD high

The cable managed on Thursday to gain approximately 200 pips, after the UK retail sales data revealed that retail sales in the UK jumped immensely both in aspects of a yearly level, as well as on monthly basis. All in all, market participants might get really puzzled on the fact that the both Wednesday’s UK labor data, as well yesterday’s retail sales data released at solid levels, but without any wage growth. Traders should read between the lines to realize that consumption in the UK can’t be sustained without a minimum – at least – growth wage.

Technical Aspects on GBP/USD

Our personal aspect of view is that despite the cable witnessed yesterday its second biggest daily rally throughout the whole year (apart from 18th September as of 2013), the GBP/USD remains well below the October high as of 1.6239. Briefly, the GBP/USD should overcome the handle of 1.6195 (as of the 10th of October) to move on further upwards. Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the GBP/USD unexpectedly bounced back on Wednesday. Despite this advance we will remain bearish as long as GBP/USD stays below the 1.6123 October 8 high. A drop through the past week’s support level at 1.5916 will confirm our bearish outlook. Failure there will target the 38.2% Fibonacci retracement of the July-to-October advance at 1.5707 and possibly 1.5536, the 50% retracement.”
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