* British Pound was seen struggling against the US Dollar, as the bears were under control.
* UK Retail Sales released by the National Statistics posted an increase of 2.3% in Jan 2016, which was more than the forecast of 0.8%.
* In terms of the yearly change, the UK Retail Sales rose by 5.2%, which was again better than expected.
* In short, the UK Retail Sales was above the forecast, but failed to help the GBPUSD pair.
UK Retail Sales
Today, the UK saw a major release, as the Retail Sales, which measures the total receipts of retail stores was released by the National Statistics. The forecast was slated for a rise of 0.8% in sales in Jan 2016, compared with the previous month. However, the sales registered a better than expected figures. There was a growth of 2.3% in sales in Jan 2016.
In terms of the yearly change, the UK Retail Sales rose by 5.2% Jan 2016, compared with the same month a year ago. This was again on the positive side, as the forecast was slated for a rise of 5.2%.
The report added that “year-on-year estimates of the quantity bought in the retail industry showed growth for the 33rd consecutive month in January 2016, increasing by 5.2% compared with January 2015. The underlying pattern in the data, as suggested by the 3 month on 3 month movement in the quantity bought, showed growth for the 26th consecutive month, increasing by 1.4%“.
Overall, the UK retail sales figure was impressive, but there was no positive reaction from the British Pound buyers. It shows that the currency is under a lot of bearish pressure, and it won’t be easy for buyers to take higher.
Technical Analysis – GBPUSD
The GBPUSD pair was seen trading lower towards the 1.4280 area where buyers are fighting to prevent the downside break. The most important support on the downside is around the 1.4250 level. As long as the pair is above it, there is a chance of it trading back higher.
On the upside, the 1.4300-20 can be seen as a short-term resistance area for more gains.
