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GBP/USD extends recovery, reaches 1-week high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - GBP/USD extended its recovery on Friday and regained the 1.4300 level despite disappointing readings coming from UK retail sales.

    GBP/USD has risen more than 250 pips over the last hours ever since hitting a fresh 7-year low of 1.4078 on Thursday. Cable reached a 1-week high of 1.4350 in recent dealings and it was last trading at 1.4345, recording a 0.89% gain on the day.

    The pound is on track to post a third daily gain in a row, what hadn’t happened since mid-November.

    GBP/USD technical levels

    On the upside, immediate resistances are seen at 1.4400 (psychological level) and 1.4426 (Jan 15 high). On the flip side, supports could be found at 1.4203/00 (Jan 22 low/psychological level) and 1.4078 (7-year low, Jan 21).

    UK data mixed

    On the data front, retail sales fell by 1.0% in December, against expectations for a 0.3% drop while YoY retail sales rose 2.6%, missing expectations for a 4.3% gain. A separate report showed that UK public sector net borrowing rose by £6.87 billion in December, less than the expected increase of £10.35 billion.
    For more information, read our latest forex news.
     

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