British Pound Strengthens On Improved Retail Sales

British Pound Strengthens On Improved Retail Sales

For the 24 hours to 23:00 GMT, GBP rose 0.27% against the USD and closed at 1.6073, after the UK retail sales rose to a four-month high in October.

Yesterday, the Confederation of British Industry, in its Distributive Trades Survey, indicated that the retail sales balance surged to a reading of 30.0 in October, from 6.0 in September. Analysts had forecast a reading of 7.0.

In the Asian session, at GMT0400, the pair is trading at 1.6084, with the GBP trading marginally higher from yesterday’s close.

Data released this morning indicated that the Gfk consumer confidence index in the UK dropped to a six-month low to -30.0 in October, from -28.0 in September.

The pair is expected to find support at 1.6041, and a fall through could take it to the next support level of 1.5998. The pair is expected to find its first resistance at 1.6107, and a rise through could take it to the next resistance level of 1.6129.