GBP/USD: the only way is up? - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that following great employment data and higher inflation readings, the UK released this Thursday upbeat Retail Sales figures for July, further fuelling Pound's rally.

Key Quotes:

"Retail sales rose, excluding fuel, rose by 1.5% monthly basis, pushing the annual rate of growth up to 5.4% from the previous 3.9%. A cheaper GBP indeed helped sales' gains, with the monthly headline printing 1.4% against previous -0.9%."

"The GBP/USD pair reached a daily high of 1.3171, having consolidate around the level for most of the last American session, with retracements down to 1.3126 being quickly reverted."

"In the 4 hours chart, technical indicators look upwardly exhausted within overbought territory, but given that the price remains near its daily high and well above a bullish 20 SMA, the risk remains towards the upside."

"A strong dynamic resistance is located at 1.3230, the 200 EMA in the mentioned time frame, with a break above it opening doors for an upward continuation up to 1.3320, the 23.6% retracement of the post-Brexit slump."