- British Pound managed to climb higher recently against the US Dollar, and looks set for more upsides.
- There is an expanding triangle pattern formed on the hourly chart of the GBPUSD pair, which may be cleared by the bulls in the short term.
- UK Retail Sales released by the National Statistics posted a decline of 1.3% in March 2016, compared with the forecast of -0.1%.
- In terms of the yearly change, the UK Retail Sales rose 2.7%, less than the forecast of 4.4%.
The British Pound has gained traction this week against the US Dollar and traded higher, but it faced sellers near 1.4400-10. The GBPUSD corrected lower and currently forming an expanding triangle pattern formed on the hourly chart, which may act as a catalyst for the next move.
The pair has moved above the 50% Fib retracement level of the last drop from the 1.4410 high to 1.4299 low, suggesting there is a chance of more gains in the near term.
Buying dips may be considered as long as the pair is above the 100 hourly simple moving average.
UK Retail Sales
Today, the UK Retail Sales, which measures the total receipts of retail stores was released by the National Statistics. The forecast was lined up for a decline of 0.1% in March 2016, compared with the preceding month. However, the result was disappointing, as there was a decline of 1.3% in sales.
Moreover, the report stated that “Continuing a sustained period of year-on-year growth, the volume of retail sales in March 2016 is estimated to have increased by 2.7% compared with March 2015. This was the 35th consecutive month of year-on-year growth”.
Overall, the result was nowhere close to encourage the GBP bulls, but the current market sentiment may push the GBPUSD pair higher.