Back
21 May 2015
GBP/USD: Weak UK retail sales might lead to a re-test of 1.5460 levels – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, shares the technical outlook and key levels for GBP/USD into the UK retail sales data release.
Key Quotes
“The investors now await the UK retail sales (exp 3.7% yoy, prev 5.0%), (exp 0.4% mom, prev -0.5%). A better-than-expected data could see a renewed buying pressure in the British Pound. The pair may test its 5-DMA at 1.56 in this case.”
“However, a weaker-than-expected print could weigh heavily over the pair, sending it lower to 1.5450-1.54 levels.”
“At the moment, the GBP bears appear stronger on account of a negative inflation print and slightly less hawkish BOE inflation report released last week. Consequently, the downside move in case of a weak data is likely to be sharper.”
“At the moment, the pair is trading at 1.5550 (Feb. 26 high). The pair appears stuck between key fib levels – 1.5519 (23.6% Fib of 1.4564-1.5813) and 1.5568 (38.2% Fib of 1.7190-1.4564).”
“A break above 1.5568 could see the pair test its 5-DMA located at 1.56. However, given the bearish GBP fundamentals, fresh offers could be expected at or above 1.56.”
“On the other hand, a break below 1.5518 could push the pair lower to 1.5445 and 1.5416 (200-DMA).”
Key Quotes
“The investors now await the UK retail sales (exp 3.7% yoy, prev 5.0%), (exp 0.4% mom, prev -0.5%). A better-than-expected data could see a renewed buying pressure in the British Pound. The pair may test its 5-DMA at 1.56 in this case.”
“However, a weaker-than-expected print could weigh heavily over the pair, sending it lower to 1.5450-1.54 levels.”
“At the moment, the GBP bears appear stronger on account of a negative inflation print and slightly less hawkish BOE inflation report released last week. Consequently, the downside move in case of a weak data is likely to be sharper.”
“At the moment, the pair is trading at 1.5550 (Feb. 26 high). The pair appears stuck between key fib levels – 1.5519 (23.6% Fib of 1.4564-1.5813) and 1.5568 (38.2% Fib of 1.7190-1.4564).”
“A break above 1.5568 could see the pair test its 5-DMA located at 1.56. However, given the bearish GBP fundamentals, fresh offers could be expected at or above 1.56.”
“On the other hand, a break below 1.5518 could push the pair lower to 1.5445 and 1.5416 (200-DMA).”