British Pound (GBP) Latest: GBP/USD Rate Struggles to Break Resistance

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)

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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