EURGBP Failed to Capitalize on Weak UK Retail Data
EURGBP gives up the gains that registered post the weaker UK retail sales data and returned back to the unchanged level. UK Retail Sales, (month over month) recorded in at -0.6%, below estimates of 0.7% in December, the yearly reading came in at 0.9% also below forecasts of 2.6%. Retail Sales ex-fuel (year over year) came in at 0.7% below expectations of 2.9%. Above that the previous figure of -0.6% revised down to -0.8%.
On the other side of the equation the European Monetary Union Consumer Price Index (month over month) came in at 0.3% in line with expectations in December. The core CPI came in at 0.4% also in line with expectations. The European Monetary Union Construction Output (year over year) came in at 1.4% below the forecasts of 1.9% in November.
EURGBP gives up early gains and is now 0.07% higher 0.8519. The British pound is under pressure the last trading sessions as investors increase bets that BOE will proceed to a 25 basis point rate cut in January. Yesterday the pair managed to rebound strongly after the weaker GDP data from UK.
On the downside, first support for the pair stands at 0.8487 the daily low. Next target to the downside for bears would be the January 9th low at 0.8467. If the GBPUSD break that level then the next support will be met at 0.8357 the low from December 17th.
On the upside, immediate resistance for EURGBP will be met at 0.8532 the daily top. Yesterday’s high will offer the next resistance at 0.8561. A break above that hurdle will open the way for the next resistance at 0.8663 the 100-day moving average.