DJIA26976.99
LIVE41.92(0.16%)
NDX7828.39
LIVE4.84(0.06%)

GBP/USD: On the defensive despite strong UK retail sales


Friday, 19 April 2019 12:34 WIB

GBP/USD


c_740_198_16777215_00_images_assets_CURRENCY3_gbpusd-FNW.jpg

The path of least resistance for the GBP/USD appears to be on the downside.

The British Pound slipped below 1.30 and closed under the April 5 low of 1.2987 yesterday, validating the bearish lower high of 1.3133 created last Friday. Notably, that is the third bearish lower in the last four weeks.

The bearish move happened despite the upbeat UK data - consumer spending, as represented by retail sales, rose 1.1 percent in March, smashing expectations of a negative print.

While Sterling failed to pick up a strong bid, the greenback found takers on the back of upbeat US retail sales report. Consumer spending rose 1.6% in March, the strongest pace of growth since September 2017, beating the consensus forecast was for a 1% rise. The previous month's print was also revised higher.

As a result, cable suffered a bearish close below 1.2987. Sterling's inability to cheer strong UK data, coupled with the bearish close below 1.30 indicates scope for a deeper drop to 1.29 - the lower edge of the falling wedge pattern seen on the daily chart. The drop will likely happen in the first half of the next week and the will likely trade comatose today as major FX trading hubs are closed on account of Good Friday holiday.

The outlook would turn bullish if the falling wedge is breached to the higher side. As of writing, the pair is trading at1.2990, representing marginal gains on the day, while the falling wedge resistance is seen at 1.3080.

Source : Fxstreet


RELATED NEWS

  • The yen rose from a seven week low against the U.S. dollar on Thursday after the Bank of Japan kept monetary policy on hold, in the wake of the Federal Reserve’s overnight decision to cut rates. The ...

POPULAR NEWS

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.