- The GBP/USD pair is trading flat but struggling on Friday, trying to hold above the 1.2400 area.
- The British pound’s mid-week recovery remains under threat as markets trim gains.
- Falling UK data is strengthening the Pound.
GBP/USD remains just above the 1.2400 area as the pair grapples with the upper end of the recent consolidation. The British Pound (GBP) is struggling to maintain gains against the US Dollar (USD) this week.
The Pound peaked at 2.25% against the dollar in mid-week, and has since retreated to a more reasonable 1.65%.
Despite a broad market risk bid fueled by markets once again speculating that the Federal Reserve (Fed) has ended interest rate hikes, GBP/USD remains stuck in the mid-range as UK data misses the mark.
UK retail sales fall 0.3% month-on-month in October
UK retail sales fell month-on-month, with the October figure at -0.3%, a reversal of the market forecast for a 0.3% rise. However, investors focused on the losses of recent months as September’s figure was revised even further downwards, going from -0.9% to an exorbitant -1.1%.
Annualized UK retail sales were even worse, at -2.7% in October versus -1% previously, and accelerating above the -1.5% forecast.
Next week investors will pay attention to the release of Minutes from the latest Fed meeting on Tuesday.
GBP/USD Technical Outlook
The GBP/USD pair is in positive territory for the week, up 1.65%, as the British pound holds on to what remains of its mid-week gains.
A short-term uptrend line from last week’s lows near 1.2200 continues to keep intraday action higher as hourly candles battle the 50-hourly SMA, but a 200-hourly SMA that flattens is poised to continue attracting bids back to the mid-range.
Daily candlestick charts have GBP/USD tied to the 200-day SMA as the pair struggles to develop new long-term momentum, with this week’s high in the 1.2500 area representing the key figure to beat for the Bulls.
GBP/USD Hourly Chart
GBP/USD Daily Chart
GBP/USD Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
