- Summary:
- GBP/USD is trading higher ahead of the UK retail sales. Later today, the market will be reacting to the US personal spending data.
GBP/USD is up by 0.24% at $1.3766 ahead of the UK retail sales. Analysts expect the core retail sales to have risen by 1.9% in February, compared to January’s -8.8%. Subsequently, the annualized drop will be at 1.5%. Furthermore, the ongoing pandemic is expected to have pushed the retail sales down by 3.5% YoY. This comes during the same week when the country has recorded weak inflation numbers and steady employment figures.
On the other hand, the US dollar rose against other currencies after the Bureau of Labor Statistics indicated that the initial jobless claims came in at the lowest level in months. In today’s session, GBP/USD will be reacting to the US personal spending and PCE price index data.
GBPUSD Technical Outlook
On an hourly chart, GBP/USD is trading above the 20 and 50-day exponential moving averages. Notably, the short-term EMA has made a crossover back to the upside. Besides, after forming a double bottom, the pair has risen past the neckline at 1.3718. If you are familiar with our free beginner articles, you are aware that a double bottom is a bullish pattern. Based on these indicators, the outlook for GBP/USD is bullish.
Currently, it is finding resistance at the prior support-turn-resistance level of 1.3770. Depending on the outcome of the awaited UK retail sales, the price is likely to move further up as the bulls target the upper level of 1.3800. Higher than that, the bulls will be testing the 1.3850 mark. On the flip side, a move downwards will have the pair find support at the neckline.
GBP/USD Chart
