GBP/UD bulls losing conviction after strong gains

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the British Pound rebounded after four straight days of declines, helped by the UK retail sales figures for February, slightly better-than-expected.

Key Quotes:

“Nevertheless sales fell 0.4% compared to the previous month, with the decline being blame to the slow start to sales of spring/summer clothing items. The year-on-year reading remained at 3.8%, generally strong according to historical standards.”

“The GBP/USD pair recovered from a low set at 1.4054 ahead of the release, and rallied up to the 1.4180 region during the American afternoon standing nearby at the end of the day.”

“The forthcoming EU referendum, however, remains in focus, and may see Sterling coming back under selling pressure. Technically, the pair has recovered from around the 23.6% retracement of this year’s decline, and the 1 hour chart shows that the price has rallied above a horizontal 20 SMA during US trading hours, whilst the technical indicators are currently losing upward strength within bullish territory.”
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Source:: FX Street