- Easter recess in the UK parliament limits the GBP moves, traders await March month retail sales data.
- More than two-month-old ascending trend-line acts as immediate support near 1.3035/30 contrast to 1.3100/05 being strong upside resistance.
The British Pound (GBP) is taking the rounds near 1.3040 versus the US Dollar (USD) on early Thursday. The GBP/USD pair has been sideways off-late due to Easter recess at the UK parliament limiting the Brexit headlines. Traders may look forward to March month retail sales figure for fresh impulse.
Wednesday’s softer than expected 2.0% figure of the UK consumer price index (CPI) (YoY) to 1.9% couldn’t recall bears as an upward sloping trend-line since February 14 continues to play its role.
On the Brexit front, British and the European lawmakers keep spreading words to avoid no-deal Brexit. Recently, the secretary-general of the European Commission was spotted by the Franco-German broadcaster ARTE saying that No deal means hard Irish border which the regional strongly wants to avoid.
Not only the UK but the US is also up for releasing its March month retail sales today. The British figure may register a -0.3% contraction (MoM) versus +0.4% earlier while increasing to 4.6% against +4.0% yearly prior. The US retail sales control group may increase to +0.4% from -0.2% earlier.
GBP/USD Technical Analysis
A nine-week-old ascending trend-line at 1.3035-30 continues to act as adjacent strong support for the quote. Should prices slip under 1.3030, 1.3000 and 200-day simple moving average (SMA) level of 1.2970 can please sellers.
On the upside, 1.3070 and 50-day SMA and a downward sloping trend-line joining highs since March 13 around 1.3100 – 1.3105 seems tough resistance. If buyers conquer 1.3105, they may take a halt near 1.3130 ahead of targeting 1.3200 number to the north.