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14 Jan 2015
GBP/USD reaches 8-day high after US retail sales
FXStreet (Córdoba) - GBP/USD picked up momentum and climbed to fresh weekly highs at the beginning of the New York session as the greenback weakened on the back of disappointing US retail sales figures.
US retail sales dropped 0.9% last month, versus -0.1% of consensus, while excluding autos it fell 1.0% against a flat reading expected. The dollar retreated broadly after data and sent GBP/USD toward a high of 1.5268 before slowing. At time of writing, Cable is trading at 1.5240, recording a 0.55% gain on the day.
GBP/USD technical outlook
“The technical picture in the short term supports further advances particularly if price breaks above the mentioned 1.5275 resistance, as indicators head strongly higher above their midlines moving away from a mild bullish 20 SMA”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart the upward potential seems even stronger, supporting the shorter term view”.
Bednarik locates next resistances at 1.5275, 1.5320 and 1.5355, while she places supports at 1.5220, 1.5180 and 1.5145.
US retail sales dropped 0.9% last month, versus -0.1% of consensus, while excluding autos it fell 1.0% against a flat reading expected. The dollar retreated broadly after data and sent GBP/USD toward a high of 1.5268 before slowing. At time of writing, Cable is trading at 1.5240, recording a 0.55% gain on the day.
GBP/USD technical outlook
“The technical picture in the short term supports further advances particularly if price breaks above the mentioned 1.5275 resistance, as indicators head strongly higher above their midlines moving away from a mild bullish 20 SMA”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart the upward potential seems even stronger, supporting the shorter term view”.
Bednarik locates next resistances at 1.5275, 1.5320 and 1.5355, while she places supports at 1.5220, 1.5180 and 1.5145.