GBP/USD Forecast: Bullish on Self-Strength
The Pound keeps rallying this Thursday, underpinned by surprisingly
better-than-expected retail sales data. According to official readings,
Retail Sales surged by 1.3% last April, against expectations of a 0.5%
advance. Yearly basis, it surged to 4.3% against the 2.5% expected.
The GBP/USD pair advanced up to 1.4663 with the news, the highest in two weeks. Dollar's demand, however, is preventing the pair from advancing further, but sharp declines are not expected, and retracements will likely be seen as buying opportunities.
Technically, the 4 hours chart shows that, after bottoming around the 61.8% retracement of its latest bullish run, the pair is now above the 23.6% retracement of the same decline, around 1.4620. The Momentum indicator in the mentioned time frame is retreating from extreme overbought levels, but the RSI indicator has resumed its advance, standing around 68, while the 20 SMA has turned north far below the current level, all of which maintains the bullish trend alive.
Renewed buying interest above 1.4660, should see the pair extending its advance up to 1.4710, en route to 1.4770, this month high. Below 1.4610 on the other hand, the pair may retrace down to 1.4560, where the pair is expected to bounce bank.
