17 Jan 2014
GBP/USD soars after strong UK retail sales
FXstreet.com (Córdoba) - The GBP/USD rallied a full cent and reached a 2-day high after UK retail sales figures came in stronger than expected.
UK retail sales increased 2.6% in December versus 0.4% expected, while YoY sales grew 5.3% more than doubling expectations, supporting BoE hawks calling for a rate rise in 2014. The GBP/USD staged a quick, steep rise and reached a high of 1.6445 before finding resistance. At time of writing, the Cable is trading at the 1.6430 zone, recording a 0.5% gain Friday following 2 days of losses.
GBP/USD levels to watch
In terms of technical levels, resistances are now seen at 1.6445 (Jan 17 high), 1.6464 (Jan 14 high) and 1.6500 (psychological level). On the other hand, supports could be found at 1.6308 (Jan 17 low/50-day SMA), 1.6300 (psychological level) and 1.6260 (Dec 18 low).
UK retail sales increased 2.6% in December versus 0.4% expected, while YoY sales grew 5.3% more than doubling expectations, supporting BoE hawks calling for a rate rise in 2014. The GBP/USD staged a quick, steep rise and reached a high of 1.6445 before finding resistance. At time of writing, the Cable is trading at the 1.6430 zone, recording a 0.5% gain Friday following 2 days of losses.
GBP/USD levels to watch
In terms of technical levels, resistances are now seen at 1.6445 (Jan 17 high), 1.6464 (Jan 14 high) and 1.6500 (psychological level). On the other hand, supports could be found at 1.6308 (Jan 17 low/50-day SMA), 1.6300 (psychological level) and 1.6260 (Dec 18 low).