Data on retail sales in the UK

Data on retail sales in the UK showed more significant decline than expected, thereby putting pressure on the pound across the entire spectrum of the market. Such a decline in retail sales confirms fears of an outpacing increase in inflationary pressures, which ultimately negatively affects the purchase opportunities.

The GBP/USD remains limited by local lows. This plays significant support for 1.340-20. But, together with the consolidation of this pair below the existing support, the way will be opened to the level of 1.3010-20 – the minimum of October.

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Hanzenko Anton