GBP/USD Declines As Retail Sales Miss Analyst Estimates

Key Insights

• UK Retail Sales declined by 1.4% month-over-month in March. 
• Today, traders will also focus on the PMI reports from the UK. 
• A move below 1.3030 will push GBP/USD towards the support at 1.3000.

U.S. Dollar Is Moving Higher Against British Pound

GBP/USD is currently trying to settle below the support at 1.3030, while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recenly pulled back towards the nearest support level at 100.50. In case the U.S. Dollar Index manages to settle below this level, it will head towards the next support level at 100.30, which will be bullish for GBP/USD.

UK has recently released Gfk Consumer Confidence report, which indicated that Consumer Confidence declined from -31 in March to -38 in April, compared to analyst consensus of -33.

UK Retail Sales declined by 1.4% month-over-month in March, while analysts expected that they would decrease by 0.3%. On a year-over-year basis, UK Retail Sales grew by 0.9%, compared to analyst consensus of 2.8%.

Today, foreign exchange market traders will also have a chance to take a look at the flash readings of UK PMI reports for April. Analysts expect that UK Manufacturing PMI declined from 55.2 in March to 54 in April. UK Services PMI is projected to decrease from 62.6 to 60. Numbers above 50 show expansion.

Technical Analysis

GBP/USD is testing the support level at 1.3030. If GBP/USD manages to settle below this level, it will move towards the next support level, which is located at 1.3000.

A successful test of the support at 1.3000 will push GBP/USD towards the next support at 1.2970. In case GBP/USD declines below this level, it will head towards the next support level at 1.2940. A move below the support at 1.2940 will open the way to the test of the support at 1.2915.

On the upside, a move above 1.3030 will push GBP/USD towards the resistance level at 1.3050. In case GBP/USD manages to settle above this level, it will get to the test of the next resistance, which is located at the 20 EMA at 1.3065.

For a look at all of today’s economic events, check out our economic calendar.