Can you hold down the Pound?
Are you guys watching the Olympics? If you see the rankings Britain is in second place so far, which is the best performance ever for the UK in the Olympic games. Not even in London 2012 could the British gymnasts get these results. This is a great achievement and it would be a record if Britain finishes off in the second place.
Anyway, back to forex and the perky Pound. The GBP is feeling sporty as well having rallied about 300 pips in the last two days, partly due to USD weakness. But, less than an hour ago, for the first time in about two months, the 80 pip run north was attributed to the economic data from the UK. This is the first time we see a positive reaction to the UK data from the GBP since the Brexit referendum.
The move north looks like good opportunity to open a long term sell forex signal
The retail sales came out much higher than expected. The retail sales grew by 1.4% in July opposed to 0.1% expected and for the entire year they are expected to grow by 5.9% against 4.2% expected. I hear the Brexit campaigners shout "Take that Brexit" in the streets of London. Well, not London actually, because London massively voted against Brexit.
The retail sales are very volatile and even if they weren´t you wouldn´t expect Brexit to have such a quick impact on the UK consumer. It takes time for the effects to filter through to the ordinary person in the UK. The weaker Pound and the good weather have helped as well with higher tourist arrivals and purchases.
The UK retail sales pushed the price against our short term sell forex signal in GBP/USD. That´s bad luck but this move up is presenting us with some good opportunities to open long term forex signals in this forex pair. We opened a long term sell forex signal at 1.3160s with a stop above 1.35 and will open another forex signal if this forex pair moves higher towards 1.33.
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