FxWirePro: GBP/USD climbs to three-day high after UK retail sales data

• GBP/USD  climbed to three-day peak on Friday as sterling firmed following stronger-than-expected UK retail sales figures.

• British retail sales rose more than expected in July, aided by favorable weather and the women’s European soccer championship, though annual growth came in slower than anticipated following revisions to prior months’ data.

• The Office for National Statistics reported on Friday that UK retail sales volumes in July rose 0.6% from June, exceeding economists’ expectations of a 0.2% increase, but annual growth of 1.1% fell short of expectations, and three-month sales dropped 0.6%.

• Attention now turns to the U.S. nonfarm payrolls report, due at 12:30 GMT. Economists forecast 78,000 new jobs for August, with the unemployment rate expected at 4.3%. 

•   Immediate resistance is located at 1.3484(SMA 20), any close above will push the pair towards 1.3549(38.2%fib)

•  Strong support is seen at 1.3390 (Lower BB) and break below could take the pair towards 1.3357(50%fib).

  Recommendation: Good to buy around 1.3450  with stop loss of 1.3370 and target price of 1.3530