GBP / USD falls below 1.3000 after UK retail sales data

Juan Luis M.
Juan Luis M.

The GBP / USD falls below 1.3000, reaching new lows of 2018.

  • The GBP / USD falls below 1.3000, reaching new lows of 2018.

  • The pair accelerates the fall due to disappointing data.

  • Retail sales decreased 0.5% MoM during June.

The GBP / USD was subject to higher selling pressure on Thursday, pulling the GBP / USD to the new lows zone of 2018, below the 1.3000 level.

GBP / USD trades lower after UK data

The pair received additional bearish pressure and fell to the 1.2990 zone after UK retail sales were below expectations for the month of June.

In fact, retail sales contracted by 0.5% per month, compared to a gain of 0.1% forecast, and expanded at an annualized rate of 2.9%, from 4.1% in May. In the same vein, underlying sales decreased 0.6% MoM and increased 3.0% in the last twelve months.

The disappointing data, the omnipresent fears around the Brexit and the political uncertainty surrounding the government of Theresa May continue to weigh on the pound sterling and keep it under strong pressure, while the sharp rise in the US dollar intensifies the sales bias in the pair.

GBP / USD levels

At the time of writing, the GBP / USD is losing 0.51%, trading at 1.3003. A break below 1.2984 (minimum of July 19), would open the door to 1.2979 (October 2017 minimum) and finally to 1.2771 (minimum of August 25, 2017). On the other hand, the following resistance is found at 1.3196 (21-day moving average), followed by 1.3295 (July 16th high) and finally 1.3318 (55-day moving average).

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