Pound Sterling Price News and Forecast: GBP/USD buyers hesitate after dismal UK data
|GBP/USD outlook: Cable eases on downbeat UK data, but needs to clear key supports to signal reversal
GBP/USD dips on Friday morning following much bigger than expected drop in UK retail sales, which fell by 3.2% in July after 1.6% drop in June and strongly beating forecast for 2.2% fall. Traders sold pound after downbeat data further boosted fears about the negative impact on the economy, already hit by high inflation and 14 consecutive interest rate increases, which push the borrowing cost to 5.25%.
Fresh weakness cracked pivotal supports at 1.2724/17 zone (daily cloud base / Fibo 38.2% of 1.2616/1.2787 recovery leg / daily Tenkan-sen) but needs to register close below these levels to confirm bearish signal. Although recent weakness was contained by daily Ichimoku cloud and subsequent recovery was moving along with rising cloud top, long upper shadows of daily candles in past three days, warned of strong offers and persisting risk of recovery stall, as near-term bulls likely got trapped above 20DMA (1.2770). Read more...
GBP/USD Forecast: Buyers hesitate after dismal UK data
GBP/USD failed to clear important technical resistance at 1.2770 and came under renewed bearish pressure following the disappointing UK data early Friday. The near-term technical outlook fails to offer directional clues but the cautious market stance is likely to make it difficult for the pair to gain traction ahead of the weekend.
Retail Sales in the UK declined 1.2% on a monthly basis in July. Retail Sales ex-Fuel contracted 1.4% in the same period. Both of these readings came in worse than analysts' estimate and cause Pound Sterling to weaken against its major rivals. Read more...
GBP/USD retreats from weekly high after, undermined by downbeat UK Retail Sales
GBP/USD snaps a three-day winning streak, currently hovering around 1.2720 in the Asian session on Friday. The GBP/USD pair is experiencing downward pressure due to softer retail sales data from the United Kingdom (UK).
UK Retail Sales declined 1.2% in July on month, swinging from a 0.6% increase in June significantly below the 0.5% decline that was expected for July. Moreover, the year-on-year figures showed a contraction of 3.2%, against the previous -1.6% and falling short of the projected -2.1%. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.