The GBPUSD pair has shown a significant rise following the announcement of UK Retail Sales data, which indicated a remarkable increase of 2.2%. This figure surpassed expectations of 0.7% and was higher than the previous reading of 0.6%. Such data reflects a robust growth in consumer spending, delivering a positive outlook for the UK economy amidst ongoing global uncertainties. This surge prompted an increased demand for the Pound Sterling, driving the GBPUSD higher as market optimism around the UK’s economic prospects grew.
In addition to strong retail sales figures, the market is closely monitoring the Bank of England’s (BoE) policies in light of persistent inflation pressures. With the economy displaying resilience, the likelihood of the BoE maintaining interest rates for a longer period appears to be increasing, which could sustain the Pound’s appeal in international markets. Conversely, uncertainties surrounding the Federal Reserve’s monetary policies and the volatility of the US Dollar also play a role in the short-term movements of the GBPUSD pair.
From a technical perspective, the GBPUSD is currently in an upward trend after breaking through a significant resistance level. Should the bullish momentum persist, this pair may aim to test the psychological level of 1.3000 as its next target. However, if a correction occurs, the support area around 1.2850 could serve as a base before any further upward movement. Given the strong economic data from the UK and positive market sentiment, the GBPUSD has the potential to continue its bullish trajectory in the upcoming trading sessions.
