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GBP/USD forex signal - UK Retail Sales - 16 Feb 2018

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Signal Details
Entry Price: 
1.4130
Take Profit: 
1.4084
Stop Loss: 
1.4183
Direction: 
Sell
Result: 
Profit
How we trade
5/5 of 4 ratings

The UK's Office for National Statistics will be releasing the monthly retail sales figures today at 0930 GMT. The data will cover the period of January. Based on the poll of the economists, the retail sales data for the UK is expected to advance 0.5% during the month being reported.

This comes amid a decline of 1.5% for the month of December. In the three months to December, data from the ONS showed that retail sales increased just 0.4% on the three month period.

The decline in December of 1.5% comes amid a stronger surge in retail sales from the previous month. The retail sales quantity bought had increased 1.4% when compared with the same month from a year ago. Retail sales in the UK has remained somewhat mixed in the previous few months.

This comes amid a surge in the exchange rate of the British pound that saw consumer prices rising at an annual pace of around 3.0%. Although economists expect retail sales to rise 0.5% for the month of January there is scope that retail sales might have slowed, if not in January then in February. The recent data on inflation showed that consumer prices once again edged higher to 3.0% for the month of January.

This could potentially dampen spending as wage growth continues to lag inflation by a strong margin indicating a real squeeze on household incomes.

The British pound was seen strengthening on the short term basis after initially posting losses. However, we expect that the gains could be limited in the near term. Resistance is seen at 1.4130 which could be tested in the short term.

Therefore, we are looking to short GBPUSD at 1.4130 with stops at 1.4183 while targeting the lower support near 1.4084 which is a price level that is pending a retest of support in the near term.

forex signal gbpusd 16 feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.