GBP/USD: Britain’s retail sales plunged to an 18-month low level in December


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.19% against the USD and closed at 1.3870 on Friday, after data showed that UK’s retail sales came in worse-than-expected in December.

Britain’s retail sales slid 1.5% on a monthly basis in December, declining by the most since the Brexit vote in 2016 and offering further evidence that rising price pressures and stubbornly weak wage growth would continue to erode the nation’s consumer spending. Retail sales had registered a revised gain of 1.0% in the prior month, while markets were anticipating for a fall of 1.0%.

In the Asian session, at GMT0400, the pair is trading at 1.387, with the GBP trading flat against the USD from Friday’s close.

The pair is expected to find support at 1.3824, and a fall through could take it to the next support level of 1.3779. The pair is expected to find its first resistance at 1.393, and a rise through could take it to the next resistance level of 1.3991.

In absence of any major macroeconomic releases in the UK today, investor sentiment would be governed by global macroeconomic factors.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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