GBP/USD Extends Recovery on Upbeat UK Retail Sales
Updated
GBP/USD Extends Recovery on Upbeat UK Retail Sales, Targets Set for Further Bullish Momentum
The GBP/USD pair continues its recovery on Friday, propelled by the positive impact of robust UK Retail Sales data for November. The Office for National Statistics (ONS) reported surprising resilience in households' retail spending, defying expectations of a sharp decline. The upbeat sales figures were driven by a notable 2.8% surge in non-food retail stores, buoyed by significant discounts during the Black Friday Sale.
Technical Analysis and Forecast:
As forecasted in our previous analysis, the GBP/USD price remains firmly within a bullish uptrend.
This week, the price experienced a rebound precisely within the 50% to 61.8% Fibonacci levels area, reinforcing the bullish sentiment.
The current outlook suggests the potential for a new swing in bullish momentum, targeting 1.27930 as the initial upside objective.
Impact on Bank of England (BoE) Monetary Policy:
The robust Retail Sales data for November is likely to affirm the Bank of England's (BoE) commitment to its restrictive monetary policy stance.
The growth rate in wages continues to outpace the necessary threshold to bring down inflation to the 2% target.
Strong consumer spending, supported by higher wages, challenges the narrative of a clear downtrend in price pressures.
Market Sentiment and Future Considerations:
The positive momentum in GBP/USD reflects not only domestic economic resilience but also the impact of attractive discounts during the Black Friday Sale.
Traders are advised to monitor further economic releases and central bank communications for potential shifts in market sentiment.
The GBP/USD pair's trajectory remains bullish, with attention on achieving and sustaining the forecasted target of 1.27930.
As market dynamics evolve, the GBP/USD pair's resilience and positive sentiment offer traders an optimistic outlook for further gains. Stay attuned to economic indicators and central bank developments for potential influences on the pair's future movements.
Our preference
Long positions above 1.25500 with targets at 1.27930 & 1.28500 in extension.
The GBP/USD pair continues its recovery on Friday, propelled by the positive impact of robust UK Retail Sales data for November. The Office for National Statistics (ONS) reported surprising resilience in households' retail spending, defying expectations of a sharp decline. The upbeat sales figures were driven by a notable 2.8% surge in non-food retail stores, buoyed by significant discounts during the Black Friday Sale.
Technical Analysis and Forecast:
As forecasted in our previous analysis, the GBP/USD price remains firmly within a bullish uptrend.
This week, the price experienced a rebound precisely within the 50% to 61.8% Fibonacci levels area, reinforcing the bullish sentiment.
The current outlook suggests the potential for a new swing in bullish momentum, targeting 1.27930 as the initial upside objective.
Impact on Bank of England (BoE) Monetary Policy:
The robust Retail Sales data for November is likely to affirm the Bank of England's (BoE) commitment to its restrictive monetary policy stance.
The growth rate in wages continues to outpace the necessary threshold to bring down inflation to the 2% target.
Strong consumer spending, supported by higher wages, challenges the narrative of a clear downtrend in price pressures.
Market Sentiment and Future Considerations:
The positive momentum in GBP/USD reflects not only domestic economic resilience but also the impact of attractive discounts during the Black Friday Sale.
Traders are advised to monitor further economic releases and central bank communications for potential shifts in market sentiment.
The GBP/USD pair's trajectory remains bullish, with attention on achieving and sustaining the forecasted target of 1.27930.
As market dynamics evolve, the GBP/USD pair's resilience and positive sentiment offer traders an optimistic outlook for further gains. Stay attuned to economic indicators and central bank developments for potential influences on the pair's future movements.
Our preference
Long positions above 1.25500 with targets at 1.27930 & 1.28500 in extension.
Trade closed: target reached
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