GBP price, news and analysis:
- The recent advance in GBP/USD has come to a halt near-term as it struggles to break above resistance at the 200-day moving average.
- Similarly, the recent decline in EUR/GBP has halted at support from an upward-sloping trendline in place since the start of May.
- UK retail sales data show a smaller drop in annual sales in May.
GBP/USD rate loses momentum
The recent advance in GBP/USD has ground to a halt at the 200-day moving average. However, it is too early to say whether it will break through to record further gains or start to slip back.
GBP/USD Price Chart, Daily Timeframe (March 2 – June 9, 2020)
Chart by IG (You can click on it for a larger image)
Similarly, Sterling’s recent strength against the Euro has paused, with EUR/GBP’s decline halting at support from a trendline joining the recent higher lows that has been in place since May 1. The FTSE 100 index of leading London-listed stocks is failing to advance too, dropping by around 0.4% in early business.
EUR/GBP Price Chart, Daily Timeframe (March 6 – June 9, 2020)
Chart by IG (You can click on it for a larger image)
| Change in | Longs | Shorts | OI |
| Daily | 8% | -8% | 1% |
| Weekly | -14% | 38% | 1% |
UK retail sales drop less in May than in April
Turning to the fundamentals, the British Retail Consortium reported early Tuesday that annual sales fell by 5.9% last month, although it was a better performance than April, when sales tumbled by a record 19.1%.
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--- Written by Martin Essex, Analyst and Editor
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