GBP/USD – Strong greenback and soft retail sales push pound lower

GBP/USD continues to head lower this week. In Tuesday’s North American session, the pair is trading at 1.2727, down 0.52% on the day. On the release front, British CBI Realized Sales dropped to 5 points, well off the estimate of 27 points. Later in the day, GfK Consumer Confidence is expected to tick lower to -10 points. In the U.S, CB consumer confidence dipped to 137.9, but still beat the forecast of 136.3 points.  

British retail sales cooled noticeably in October, after four months of strong activity. A hot summer and football fever over the success of the British team at the World Cup fueled retail sales, but colder temperatures have served to dampen consumer spending. Meanwhile, consumer confidence continues to languish in negative territory, and GfK consumer confidence is expected to post a weak reading of -10 points.

Major central banks are well-known for their opposition to digital currencies, but Janet Yellen, former chair of the Federal Reserve, went a step further on Monday. Yellen didn’t pull any punches as she said that Bitcoin is “anything but” a useful currency. Last December, just before leaving the Fed, Yellen labeled Bitcoin a “highly speculative asset” and “not a stable source of value”.

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U.S dollar has earned its stripes

GBP/USD Fundamentals

Tuesday (October 30)

• 7:00 British CBI Realized Sales. Estimate 27. Actual 5
• 9:00 US S&P/CS Composite-20 HPI. Estimate 6.0%. Actual 5.5%
• 10:00 US CB Consumer Confidence. Estimate 136.3. Actual 137.9
• 20:01 British BRC Shop Price Index
• 20:01 British GfK Consumer Confidence. Estimate -10

Wednesday (October 31)

• 8:15 US ADP Nonfarm Employment Change. Estimate 190K

*All release times are DST

*Key events are in bold

GBP/USD for Tuesday, October 30, 2018

GBP/USD October 30 at 12:20 DST

Open: 1.2793 High: 1.2813 Low: 1.2726 Close: 1.2727

GBP/USD Technical

GBP/USD showed little movement in the Asian session and posted considerable losses in European trade. In North American trade, the pair ticked higher but has retracted

• 1.2723 has weakened in support following losses by GBP/USD on Tuesday. It could break in the North American session
• 1.2852 is the next resistance line
• Current range: 1.2723 to 1.2852

Further levels in both directions:

• Below: 1.2723, 1.2590 and 1.2479
• Above: 1.2852, 1.2966, 1.3173 and 1.3301

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.