GBPUSD jumped over 25 pips after the release of better retail sales from th UK. The United Kingdom Retail Sales came in at 0.9% beating forecasts of 0.7% in January. The yearly reading for the retail sales came in at 0.8% also topping the forecasts of 0.7%, the higher reading in the last two years. Post-election rebound in consumer sentiment is supporting consumer spending. Retail sales ex-fuel came in at 1.6% above the market consensus of 0.8%.
Now investors will turn their attention to Flash PMIs tomorrow. The Bank of England would be satisfied with the latest economic data from UK.
GBPUSD pair earlier losses after the better retail sales but failed to turn positive on the day amid US dollar strength. The fundamentals are coming strong in January but the technical outlook continues to be neutral as the pair trades below the 100-day MA.
On the downside, initial support for the pair stands at 1.2882 the daily low. Next support for GBPUSD will be met at 1.2824 the low from November 27, 2019. A break below would attract more sellers to join the action targeting the November 11th, 2019 low at 1.2773.
On the other hand, the immediate obstacle stands at 1.2928 the daily top. If GBPUSD pair break above more offers would emerge at 1.2938 the 100-day MA and then at 1.3070 the double top. A bullish outbreak would target the next resistance at 1.3183 the high from February 3.