- – The British Pound gained momentum today, and moved above the 1.30 resistance against the US Dollar.
- – The GBP/USD pair broke a major connecting resistance trend line at 1.3000 to open the doors for more upsides.
- – Today in the UK, the Retail Sales Change for April 2017 (MoM) released by the National Statistics posted an increase of 2.3%.
UK Retail Sales
In the UK today, the Retail Sales Change for April 2017 was released by the National Statistics. The market was positioned for the Retail Sales to increase by 1% in April 2017, compared with the previous month.
However, the result was well above the forecast, as the UK’s Retail Sales increased 2.3%. In terms of the yearly change, there was an increase of 4% in April 2017, more than the forecast of 2%. The report highlighted that “In April 2017, the quantity bought in the retail industry increased by 2.3% compared with March 2017 and by 4.0% compared with April 2016. The underlying pattern, as measured by the 3 month on 3 month estimate, showed a slight increase in April 2017 following a short period of contraction, increasing by 0.3%”.
Overall, the GBP/USD pair may continue to gain momentum and could trade towards 1.3080 in the near term.
GBP/USD Technical Analysis
The British Pound was slowly moving higher and after the release of the UK Retail Sales of April 2017, there was an increase in the momentum and it broke the 1.30 resistance against the US Dollar. The GBPUSD traded as high as 1.3044 where there was a minor selling pressure.
During the upside move, the pair broke a major connecting resistance trend line at 1.3000 on the hourly chart. If the pair corrects lower, it may find support around the 23.6% Fib retracement level of the last wave from the 1.2936 low to 1.3044 high.
However, the same broken trend line and 1.3000 handle may act as a strong support on the downside. And, the 38.2% Fib retracement level of the last wave from the 1.2936 low to 1.3044 high is at 1.3003. So, we have many support levels near 1.30, waiting to act as a barrier for sellers if the pair moves down in the near term.Tags: British Pound, GBP/USD Technical Analysis, UK Retail Sales, US Dollar