The pound received support. Retail sales data in Great Britain

The British pound is strengthening its positions against the US dollar based on positive data on retail sales in the UK.

• According to published data, retail sales in November rose by 1.1%, exceeding the previous value of 0.5%. On an annualized basis, the growth rate was 1.6%, which is higher than the previous value of 0.0%.
• The base retail sales index rose by 1.2% in November, which is 0.4% higher than the October figure. On an annualized basis, the growth rate was 1.5%, which is higher than the previous value at the level of 0.0%.

Technical Analysis: Based on yesterday’s weakening of the US dollar, the pair GBP/USD managed to return to the upward channel on H1, which indicates a possible continuation of the uptrend in the short term. The main resistance levels are 1.3500; 1.3530, the support levels are 1.3400, 1.3365. The decision on trade from the levels of resistance and support should be made after the result of the Bank of England  meeting will be published. See “Market Focus“.

Fig.  GBP/USD. The current price is $ 1.3450.

Alexander Sivtsov