- The GBP/USD pair is reaching Friday’s highs, reaching 1.2170.
- Broad market sentiment is improving, pulling the US Dollar back heading into Friday’s close.
- UK Retail Sales did not help the situation much, with print firmly to the downside.
The pair GBP/USD is trying to take profits before Friday’s close, reaching 1.2170 at midday on Friday. Despite falling retail sales in the UK, the British Pound (GBP) is benefiting from a general weakening of the US Dollar (USD).
UK retail sales fell 0.9% month-on-month in September, versus -0.1% expected.
UK retail sales on Friday disappointed expectations, as September retailers’ receipts delivered a dismal -0.9% versus -0.1% forecast, intensifying the decline from August’s 0.4%.
With a quiet Monday on the economic calendar, Sterling traders will be keeping an eye on Tuesday’s UK Purchasing Managers’ Index (PMI) and jobs numbers.
UK job additions are expected to decline by a further 198,000 in August, as investors expect a slight improvement from -207,000 in July, and markets expect a slight improvement in the UK flash PMI, with the Composite PMI expected to come in at 48.8 compared to last 48.5.
GBP/USD Technical Outlook
The British Pound is trading at 1.2150 against the US Dollar after hitting a high of 1.2170 on Friday, and the GBP/USD pair is seeing a recovery from the day’s lows near 1.2093.
Despite Friday’s moderate recovery, the GBP/USD pair remains firmly planted in a bearish zone. Higher up on the chart, the 50-day SMA is confirming a bearish crossover of the 200-day SMA, and any technical recovery on the chart will be primed for a clash with falling SMA resistance.
Technical support currently lies at the October low at 1.2037, and a break of this level sets up GBP/USD for a bearish run towards an early-year support zone near the 1.1900 area.
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.
