GBP/USD remains capped below 1.3200 ahead of UK retail sales
- Firmer but within range.
- Risk-on underpins.
- Eyes on the UK retail sales, Carney’s speech and US tax vote.
The GBP/USD pair is seen making another attempt to regain 1.32 handle, after having consolidated briefly near 1.3175 region last hours, with the bulls eagerly awaiting the UK retail sales release for the next push higher.
GBP/USD: UK retail sales to rebound in Oct?
The spot gathers pace to take-out the stiff resistances located near 1.3285 region, as the US dollar rebound appears to have stalled amid increased cautiousness heading into the crucial US House tax reform vote.
Meanwhile, persisting risk-on sentiment also aids the renewed upside in the higher-yielding currency pound. Further, the latest comments from the EU’s Chief Brexit Coordinator Verhofstadt, citing that he does not expect Brexit talks to fail, offers a fresh lift to the GBP bulls.
Attention now turns towards the UK retail sales release, with the lead indicators, BRC and Visa survey, suggesting the official retail sales could miss estimates. The UK retail sales are expected to rebound to 0.1% in Oct versus a 0.8% drop seen previously.
GBP/USD Technical View
Haresh Menghani, Analyst at FXStreet writes: “Technically, the pair remains positioned in a neutral territory and traders are likely to wait for a decisive break through the mentioned range before positioning for the next directional move. Below the 1.3100 handle, the pair might continue to find support near the 1.3060-50 region, which if broken is likely to accelerate the slide towards the 1.30 psychological mark.”
“On the upside, momentum beyond the 1.3200 handle might continue to confront fresh supply near the 1.3225-30 region, above which a bout of short-covering could lift the pair towards the 1.3300 handle,” Haresh adds.