GBP/USD Update – 21/04/2017 (14:40) – by Arjun Lakhanpal

GBP/USD Update – 21/04/2017 (14:40): GBP finding it difficult to move back above mid-1.2800s, while immediate downside remains protected by the 1.2775-70 horizontal support area. On the economic data front, the pair had a muted reaction to a larger-than-expected drop in the UK monthly retail sales figure. Today’s disappointing retail sales clearly suggests that higher inflation is squeezing consumer spending. GBP price-action over the past couple of trading sessions could be categorized as a consolidative phase, especially after strong intraday gains following the UK PM Theresa May’s announcement to call for a snap election on June 8th. The bullish bias would be confirmed once it breaks through 1.2850-60 immediate hurdle, above which the pair seems all set to head back towards the 1.2900 handle, representing 61.8% Fibonacci retracement level of 1.3445-1.1980 downslide. A follow through buying interest has the potential to continue boosting the pair further towards 1.2955-60 intermediate resistance ahead of the key 1.30 psychological mark.