GBP/USD Bounces-Off 1.4320 Ahead of UK Retail Sales
The GBP/USD is
seen gradually drifting lower as we progress towards early Europe,
having breached yesterday’s lows, and now looks to test 1.43 handle
ahead of the UK retail sales data.
UK retail sales data in focus
The GBP/USD pair modestly flat at 1.4330, having struck fresh session lows at 1.4320. The cable remains under mild pressure in early Europe as the pound fails to benefit from the persistent risk-off market profile, triggered by the overnight rebound in the oil prices. While markets continue to cheer upbeat US existing home sales data, which weighs further on the GBP/USD pair.
However, the downside remains capped as sterling finds support from expectations of a minor-rebound in the UK retail sales data due for release in the upcoming session. Retail Sales dropped sharply in February, posting a decline of -0.4%. However, this beat the estimate of -0.7%. Another decline is expected in the March report, with an estimate of -0.1%.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4349/50 (Apr 12 High/ psychological levels), above which 1.4375 (100-DMA) would be tested. On the flip side, support is seen at 1.4300 (round figure) below that at 1.4259/50 (10-DMA/ psychological levels).