- British pound finally managed to recover some ground against the US Dollar and traded above 1.4200.
- A major bearish trend line on the 4-hours chart was breached to ignite an upside move.
- UK Retail Sales was released by the National Statistics, which registered a decrease of 1% in December 2015, which missed the forecast of a -0.3% decline.
- Speaking of the yearly change, the UK Retail Sales gained 2.6%, again less than the forecast of 4.3%.
The GBPUSD pair showed bullish signs today and traded higher. There was a major bearish trend line on the 4-hours chart, which was cleared by buyers to take the pair higher. The pair is currently trading near the 50 simple moving average, which is preventing gains.
A break above the 50 MA (H4 chart) may take the pair further higher in the near term.
On the downside, the broken trend line may act as a support if the pair corrects lower.
UK Retail Sales
Today, the UK Retail Sales, which gauges the total receipts was released by the National Statistics. It also helps in evaluating the percent changes/ the rate of changes of sales. The market was aligned for a decline of 0.3% in sales in December 2015, compared with Nov 2015. The outcome was a lot lower than the market expected, as the UK Retail Sales declined 1%. Speaking of the yearly change, the UK Retail Sales gained 2.6%, again less than the forecast of 4.3%.
The report added that the “underlying pattern in the data, as suggested by the 3 month on 3 month movement in the quantity bought, showed growth for the 24th consecutive month, increasing by 1.1%”.
In short, there was nothing to cheer for buyers, but still there was an upside move, suggesting positivity in the GBPUSD pair.