- Relatively calm day in the forex market on Friday, for the time being.
- The pound rose after UK retail sales data, without much strength.
- GBP/USD maintains favorable tone, continues to face resistance at 1.3640/50.
The GBP/USD is marginally higher on Friday after failing to hold higher. The pair climbed hours back to 1.3642the highest level in a week but then started a pullback that took it to the 1.3610 zone.
The pound was helped by UK retail sales data for January, which showed a stronger-than-expected rise. The 1.9% increase beat expectations of 1.2%. The figures add to others that support the hard wing of the Bank of England.
In the US, the economic calendar shows the data on the sale of existing homes, which should not have a major impact. Attention could be focused on the words of several Federal Reserve officials who will speak publicly: Charles Evans, John Williams, Lael Brainard and Christopher Waller. The relationship between the US and Russia, plus the tensions on the Ukrainian border may continue to dominate the scene.
The DXY is trading flat so far on Friday, in a context of low currency volatility. The context favors GBP/USD clinging to weekly gains.
The pair maintains a positive tone holding above 1.3600. A drop below would trigger a more significant correction. While to the upside, the break of 1.3640/50 would strengthen the pound.
Technical levels
Source: Fx Street
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