18 Jun 2015
GBP/USD takes a breather ahead of UK retail sales
FXStreet (Mumbai) - The GBP bulls are sitting on the sidelines, restricting the GBP/USD pair around 1.5850 ahead of the data in the UK, which could show retail sales growth slowed down in May.
Rate hike itch back in the UK
The GBP shot up by more than 200 pips on the back of a sharp rise in the average hourly earnings and a slightly dovish FOMC statement. The rate hike bets in the UK could be bolstered further in case the UK retail sales print higher than the expected 0.0% month-on-month and 4.8% year-on-year.
Apart from the UK retail sales, the pair could be influenced by US weekly initial jobless claims and consumer price index. The US economy is seen exiting deflation in May.
GBP/USD Technical Levels
The pair currently trades at 1.5834. The immediate resistance is located at 1.5877, above which gains could be extended to 1.5941. On the flip side, a break above 1.58 could drive the pair lower to 1.57 levels.
Rate hike itch back in the UK
The GBP shot up by more than 200 pips on the back of a sharp rise in the average hourly earnings and a slightly dovish FOMC statement. The rate hike bets in the UK could be bolstered further in case the UK retail sales print higher than the expected 0.0% month-on-month and 4.8% year-on-year.
Apart from the UK retail sales, the pair could be influenced by US weekly initial jobless claims and consumer price index. The US economy is seen exiting deflation in May.
GBP/USD Technical Levels
The pair currently trades at 1.5834. The immediate resistance is located at 1.5877, above which gains could be extended to 1.5941. On the flip side, a break above 1.58 could drive the pair lower to 1.57 levels.