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21 May 2015
UK retail sales supporting GBP/USD longs – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team reviews the UK retail sales data release and further maintains their bullish outlook on GBP/USD, targeting 1.5815 levels.
Key Quotes
“British retail sales rose 1.2% mom and 4.7% yoy, in April more strongly than expected, recovering from a surprise fall in March. The median forecast was 0.4% mom. The strength of the figures may further ease concerns that a slowdown in Britain's economy seen in the first quarter might be the start of a longer period of weakness. However, the sharp increase in sales was due in large part to a possible one-off surge in purchases of clothing, textiles and footwear which jumped by 5.2% in April from March. This jump in sales was a consequence of warm weather.”
“The GBP/USD rose strongly after the retail sales data and is close to Tuesday’s 1.5669 high. A close above this level would be a good signal for our long GBP/USD position taken at 1.5460. We see the scope for gains near the May 14 1.5815 peak. We have raised the stop-loss level to save profits on this trade.”
“Resistance: 1.5669 (high May 19), 1.5745 (high May 18), 1.5809 (high May 15)”
“Support: 1.5525 (hourly low May 21), 1.5473 (low May 20), 1.5447 (low May 19)”
Key Quotes
“British retail sales rose 1.2% mom and 4.7% yoy, in April more strongly than expected, recovering from a surprise fall in March. The median forecast was 0.4% mom. The strength of the figures may further ease concerns that a slowdown in Britain's economy seen in the first quarter might be the start of a longer period of weakness. However, the sharp increase in sales was due in large part to a possible one-off surge in purchases of clothing, textiles and footwear which jumped by 5.2% in April from March. This jump in sales was a consequence of warm weather.”
“The GBP/USD rose strongly after the retail sales data and is close to Tuesday’s 1.5669 high. A close above this level would be a good signal for our long GBP/USD position taken at 1.5460. We see the scope for gains near the May 14 1.5815 peak. We have raised the stop-loss level to save profits on this trade.”
“Resistance: 1.5669 (high May 19), 1.5745 (high May 18), 1.5809 (high May 15)”
“Support: 1.5525 (hourly low May 21), 1.5473 (low May 20), 1.5447 (low May 19)”