- GBP/USD recovered sharply from the yesterday low of 1.34686 on better than expected UK retail sales. The pair jumped till 1.36074 and is currently trading around 1.35570.
- UK retail sales surged unexpectedly in Aug. Retail sales volume grew at 1.0% month-on –month compared to 0.1% expected and jumped to 2.4% Y-O-Y compared to forecast of 1.1% rise. The surge in UK retail sales likely to boost BOE rate hike bets.
- On the higher side, near term resistance is around 1.36320 and any break above will take the pair till 1.3700/1.3750.
- The near term support is around 1.3500 and any break below will drag the pair down till 1.3450/1.3400. The minor weakness only below 1.3150.
It is good to buy on dips around 1.3500 with SL around 1.34500 for the TP of 1.3615/1.3630.