GBP/USD Challenges 1.4300 on Poor UK Data

GBP/USD Challenges 1.4300 on Poor UK Data

21 April 2016, 11:02
Roberto Jacobs

GBP/USD Challenges 1.4300 on Poor UK Data

The sterling has come under renewed selling pressure, relegating GBP/USD to trade in the proximity of the 1.4300 key support.

GBP/USD weaker post-UK releases

The pair has intensified its daily decline after miserable prints from UK’s Retail Sales during March. In fact, headline sales have contracted 1.3% MoM while core sales have dropped 1.6%, both prints coming in below initial estimates.

Further data saw Public Sector Net Borrowing has come at £4.16 billion during the same period, down from February’s £6.33 billion.

Ahead in the session, risk trends and the US docket will take centre stage, as Initial Claims and the Philly Fed Manufacturing index are both due later.

GBP/USD levels to consider

As of writing the pair is down 0.19% at 1.4306 and a breakdown of 1.4249 (55-day sma) would open the door to 1.4092 (38.2% Fibo of 1.3833-1.4517) and then 1.4004 (low Apr.6). On the other hand, the next up barrier aligns at 1.4420 (high Apr.19) ahead of 1.4436 (100-day sma) and finally 1.4460 (high Mar.30).


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