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21 Feb 2014
GBP/USD testing mid 1.6600’s
FXStreet (Guatemala) - GBP/USD has been trying to find a base on the 1.66 handle after recovering from the lows 1.6612.
From the calendar, retail sales were softer than expected, falling 1.5% M/M compared to consensus expectations of a 1.5% fall. However, as strategists at TD Securities noted, given the weather worries and almost 3% rise the month before, the fall is not as bad as it would first appear. “The details of the release were also not as bad as the headline. The principal weakness was in food store sales which were down 3.4% on the month, while non-food was actually up 0.4% after the 2.6% gain in Dec. Subgroups there were mixed, as clothing and department store sales fell, but this was more than offset by the gains in household goods and other stores. So overall, the retail sales release paints a picture of decent consumer resiliency”. The pair has been on the bid since and recovering the losses to some extent. Then we had public sector finance data that were also slightly disappointing with income tax receipts declining by 4.9% compared to the same month last year. However, as the strategists at TD Securities pointed out, “the revisions on this can be quite volatile due to the deadline for self assessment tax returns being 31st January, so there could be scope to see a more positive print or revision next month”.
GBP/USD Levels
The 20 DMA is 1.6519, the 50 DMA is 1.6462 and the 200 DMA is 1.5896. RSI (14) reads 61.04. Supports are ascending from 1.6559, 1.6594, 1.6605 and 1.6625. Spot is 1.6644 while resistances are 1.6700, 1.6726, 1.6741 and 1.6757.
From the calendar, retail sales were softer than expected, falling 1.5% M/M compared to consensus expectations of a 1.5% fall. However, as strategists at TD Securities noted, given the weather worries and almost 3% rise the month before, the fall is not as bad as it would first appear. “The details of the release were also not as bad as the headline. The principal weakness was in food store sales which were down 3.4% on the month, while non-food was actually up 0.4% after the 2.6% gain in Dec. Subgroups there were mixed, as clothing and department store sales fell, but this was more than offset by the gains in household goods and other stores. So overall, the retail sales release paints a picture of decent consumer resiliency”. The pair has been on the bid since and recovering the losses to some extent. Then we had public sector finance data that were also slightly disappointing with income tax receipts declining by 4.9% compared to the same month last year. However, as the strategists at TD Securities pointed out, “the revisions on this can be quite volatile due to the deadline for self assessment tax returns being 31st January, so there could be scope to see a more positive print or revision next month”.
GBP/USD Levels
The 20 DMA is 1.6519, the 50 DMA is 1.6462 and the 200 DMA is 1.5896. RSI (14) reads 61.04. Supports are ascending from 1.6559, 1.6594, 1.6605 and 1.6625. Spot is 1.6644 while resistances are 1.6700, 1.6726, 1.6741 and 1.6757.