GBP analysis and news
- GBP / USD threatening to fall below 1.36, on the horizon Fibonacci support
- Retail sales fell 2.5% in July, reducing annual figures by almost 7 percentage points
The GBP sales continue this morning at £USD threatening to break below 1.36 after Thursday’s fall of 0.9%. The couple has struggled to keep up the momentum over the past three months, after being rejected for the second time this year on June 1, 1.4250st. If the 1.36 mark is exceeded, the first toy will be 23.6% Fibonacci retracement (1.3577), which was the key a month ago to stop the decline. Falling below this limit would see GBP / USD at a new 6-month low, with sellers likely to see the next target at 1.35.
GBP / USD daily schedule
The broader mood in the market remains quite risky as growth problems and the delta variant become more prominent. Although the introduction of vaccines is quite advanced in most developed countries, we have no indication of the impact that the new wave of COVID may have on the market in this situation, as closure measures continue to be implemented in some regions, despite high vaccination rates. increased concern about the new restrictions after the end of the summer.
Elsewhere, UK retail sales data were released this morning, which painted a rather bleak picture of consumer spending in July. Monthly sales fell 2.5% as economists expected a modest 0.4% rise. Sales a year ago are now 2.4%, 9.2% in June and 6% much lower than forecast.
– Written by Daniela Sabin Hathorn, market analyst
Follow Daniela on Twitter @HathornSabin