GBP/USD Finally Takes Out 1.30
Skerdian Meta•Thursday, May 18, 2017•1 min read
Yesterday, we posted an update about how GBP/USD was likely to finally pick a direction. But that was if the inflation (CPI) report deviated from expectations. CPI came out a bit higher though nothing worth of sending the GBP surging.
Today is another story; the retail sales report came out much stronger than expected and GBP/USD finally took off, breaking 1.30 at last. Although, yesterday it felt like this long term resistance level was going to be broken soon because the price was sticking above 1.2950 for long and the Buck was going through some extreme weakness in other forex pairs.
So here we go, the retail sales figures were all the market needed today. Now we are attacking 1.3050.
Last month´s retail sales number was revised higher, although still in negative territory, but this month´s numbers were too good to be ignored.
Expectations were for a 1.2% increase, but the actual number was 2.3%, while at 2%, the core retail sales number was impressive as well.
Impressive but within the range
GBP/USD easily took out 1.30 shortly after, but I still think that the long-term trade in GBP/USD is to sell. 1.30 was waiting to be broken, so it has been pushing the price upward in recent weeks. Now that it is gone, I think that the pressure will be on the downside, once this retail sale move is over.
But, we will have to spot the reversal before it happens and carefully pick the entry price. So, we´re on this pair, observing the price action for a possible reversal soon.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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