- British Pound tumbled against the US Dollar after the fed interest rate decision and the momentum still favors sellers.
- GBPUSD is heading towards the last swing low around 1.4900 and looks set for more losses.
- The UK Sales released by the National Statistics posted an increase of 1.7% in November 2015, which was a lot higher compared with the forecast of 0.5%.
- In terms of the yearly change, the UK Retail Sales rose 5%, but failed to help the GBPUSD pair.
There was an ascending channel formed on the 4-hours chart of the GBPUSD, which was highlighted in one of the previous posts. The pair broke the channel support area and then dived sharply below the 1.50 support area.
The pair is currently heading towards the last swing low of 1.4892 and if sellers gain control more losses are likely in the short term.
If there is a short-term rally moving ahead, then it may not last long as the bulls could find it hard to take the GBPUSD pair higher.
UK Retail Sales
Today, the UK Retail Sales, which measures the total receipts of retail stores was released by the National Statistics. The market was expecting an increase of 0.5% in sales in November 2015, compared with the preceding month. However, the outcome was way above the forecast, as the UK Retail Sales gained by 1.7%.
In terms of the yearly change, the UK Retail Sales rose 5% which was also above the forecast. The report added that “underlying pattern in the data, as suggested by the 3 month on 3 month movement in the quantity bought, showed growth for the 23rd consecutive month, increasing by 2.1%”.
Overall, the report was very positive, but sellers were in such mood that the bulls failed to gain traction. More losses are possible moving ahead.