GBP/USD – Bullish 1-hr 50-MA & 200-MA crossover ahead of UK retail sales release

GBP/USD pair has stalled around 1.23 levels ahead of the UK retail sales data release despite the bullish 1-hr 50-MA and 200-MA crossover.

UK retail sales likely to rise

The British Retail Consortium (BRC) data released earlier this month consumers picked up the pace of their spending in September after a weak August. Consequently, the government retail sales report due today could shw an improvement in spending as well.

Markets expect the figure to come-in at 0.2% m/m for September compared to August figure of -0.2%. In annualised terms, the figure is see cooling to 4.4% from August’s number of 5.9%. Later in the day, the ECB rate decision and the resulting action in the EUR/GBP cross could influence the pair as well.

GBP/USD Technical Levels

A break above 1.2332 (previoud day’s high) would open up upside towards 1.2373 (Oct 11 high), beyond which psychological level of 1.24 could come into play. On the lower side, breach of 1.2276 (Asian sessin low) would expose 1.2247 (5-DMA), under which losses could be extended to 1.22 (zero figure).