As release of British employment and data, generally, was perceived positively, the Pound expectedly climbed to the 1.3200 level. Nevertheless, a subsequent release of the American retail sales and data neutralized this achievement by returning the pair back to combined formed by the 55-, 100- and 200-hour SMAs near the 1.3135 mark. After making a rebound the cable resumed the surge. Second day in a row bulls are hoping to use macroeconomic data release to push the rate to the pre-fall 1.3230 level. Whether they succeed or not will mainly depend on the UK retail sales growth rate. There just a need to take into account that the pair is unlikely to climb above a combination of the monthly PP and upper edge of dominant channel from the north and the above MAs from the south.
A release of better than expected information on the British retail sales supported active appreciation of the Pound and provided an impulse strong enough to break through the 1.3228 resistance level and reach an intersection of upper boundaries of a dominant descending and junior ascending channels. As there are no significant macroeconomic data releases planned for today that could facilitate the further surge, the cable is expected to make a rebound and start the new trading week moving back to the 1.3200 mark.
The only question remains strength of which pattern will prevail. Majority of traders have bullish outlook on the Sterling. However, the aggregate market sentiment is 53% bearish. In this sense, there is a need to remember that currency pair is trading in a general uptrend.
Check out our trading platform: