- Sterling looking for some good news to try and halt the slide.
- Market sentiment is forcing down the GBP/USD as trade tensions clash with flubbed UK data.
The GBP/USD is holding steady ahead of a hectic London market session, trading above 1.3325.
GBP/USD: Fed-BOE divergence hurts, eyes UK retail sales
The Sterling has declined for the last five straight weeks, and looks set to price in a sixth as floundering confidence in the GBP and a broad market recovery for the Greenback sees the GBP/USD flubbing its strong market stance running up to April’s high at 1.4376. A worse-than-expected economic downturn for the UK’s economy has seen the Bank of England (BoE) get knocked off its hawkish post and have to walk back a widely-expected rate hike earlier this month.
Today sees UK Retail Sales figures at 08:30 GMT, and Sterling bulls will be hoping for a positive reading, with the year-on-year core figure expected to print an abysmal 0.1%, versus the previous reading of 1.1%. Comments from the BoE’s Mark Carney are also expected at 08:00 GMT.
GBP/USD levels to watch
As noted by FXStreet’s own Omkar Godbole in his GBP/USD preview for today, “the immediate resistance is seen at 1.3402 (5-day MA), 1.3460 (10-day MA) and 1.35 (psychological hurdle). Meanwhile, support is seen at 1.3305 (previous day’s low), 1.3268 (August 3 high), and 1.3221 (Nov. 25 low).”
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