British Pound at Resistance as U.K. Retail Sales Unexpectedly Rise
- UK Retail Sales Better-than-Expected in March
- British Pound Rises Against US Dollar
- British Pound Looks for a Lifeline Following Bank of England Minutes
U.K. retail sales rose in March prompting a bullish reaction in GBPUSD. The better-than-expected figures support a positive outlook for growth and inflation in the first quarter. Retail sales (including auto) rose 0.1 percent in March, and beat analysts’ expectations for a print of -0.4 percent.
Positive real wage growth paired with the ongoing improvement in the labor market appears to have prompted further expansion in household spending. The better-than-expected print may put pressure on the Bank of England to raise benchmark interest rates off of the record low.
DailyFX Technical Strategist Jamie Saettele cautions traders of further gains for the British Pound. “Upside momentum is pathetic,” Saettele says, “RSI hasn’t been above 70 since October so this doesn’t even feel like a bull, but respect the upside as long as the trend line that extends off of the November and February lows hold.”
GBPUSD Daily Chart from GBP/USD-How Many Times Can the Rally Fail Before it FAILS?
Chart Prepared by Jamie Saettele Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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