GBP/USD: Britain’s retail sales rose at a faster than expected pace in January


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 1.57% against the USD and closed at 1.2881.

Data indicated that UK’s retail sales rose 0.9% on a monthly basis in January, amid robust demand for clothing, footwear and food and compared to a revised drop of 0.5% in the previous month. Additionally, the CBI balance of firms reporting total order book above normal advanced to a level of -18.0 in February, more than market expectations and compared to a level of -22.0 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.2892, with the GBP trading 0.09% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.2852, and a fall through could take it to the next support level of 1.2812. The pair is expected to find its first resistance at 1.2929, and a rise through could take it to the next resistance level of 1.2966.

Going forward, traders would closely monitor UK’s Markit manufacturing and services PMIs for February along with the public sector net borrowing for January, slated to release in a few hours.

The currency pair is trading between its 20 Hr and 50 Hr moving averages.

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