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GBP/USD extends below 1.5000

FXStreet (Edinburgh) - The pound reverted for a moment its decline on Friday, pushing GBP/USD just above 1.5000 the figure.

GBP/USD softer post-sales

The pair is accelerating its intraday correction lower however, despite headline retail sales in the British economy expanded more than estimated during December 4.3% on a yearly basis. Sales excluding Fuel followed suit, advancing 4.2% YoY. Inter-month, sales gained 0.4% and 0.2%, respectively. Next of relevance for the pair will be the US releases due later, with Existing Home Sales and Markit’s PMI.

Analysts at UOB Group commented, “GBP plunged below 1.5000 to touch an overnight low of 1.4973. The down-move appears to be overextended and further sustained down-move is unlikely. Allow for a move to 1.4980/85 but 1.4950 is expected to hold for a rebound to 1.5050”.

GBP/USD significant levels

The pair is losing 0.15% at 1.4983 and a breach of 1.4900 (psychological level) would aim for 1.4845 (low Jul.10 2013) and then 1.4814 (2013 low Jul.9). On the upside, the initial hurdle aligns at 1.5027 (high Jan.23) ahead of 1.5059 (hourly high Jan.22) and then 1.5142 (hourly high Jan.22).

UK retail sales see growth for the 21st consecutive month

The data released by the UK Office for National Statistics (ONS) today showed Retail Sales came-in at 4.3%, beating the expected print of 3.4%, and down from the previous month’s print of 6.9%. The full year – 2014 retails rose 3.8% compared with 2013.
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