Pound inches down after UK retail sales slow in May

Pound inches down after UK retail sales slow in May

Pound inches down after UK retail sales slow in May fxcommentThe pound inched down against the U.S. dollar to cut some of its earlier gains on Thursday after a report U.K. retail sales slowed in May.

U.K. retail sales rose 0.2 percent on the monthly basis in May, while advanced 4.6 percent from a year earlier, coming in line with analysts’ forecasts.

The reading slowed from a downwardly revised of 0.9 percent in April, as clothing sales dipped 1.6% from April, marking the biggest fall since September 2014.

The GBPUSD pared some of its earlier gains to retreat from a peak of 1.5927 to trade around 1.5893.

The pair rose on Wednesday after a robust unemployment figures, and as the U.S. dollar weakened following comments from Fed Chairwoman Janet Yellen.

Yellen did not state directly that the first interest rate in nearly a decade would occur in September, while the Fed slashed its growth forecasts for this year, causing some sell off in the dollar.

The GBPUSD soared for a fifth straight session, heading for another weekly advance.

Meanwhile, the pair is trading above the session’s pivot point located at 1.5766, while protected by support at 1.5686. Resistance at 1.5987 could thwart further rise in the pair.

The bullish crossover between Daily SMA 7 and SMA 15 has supported the upside direction, yet the price faced some resistance as the RSI 14 hit the 70-overbought line.

GBPUSD UK retail sales fxcomment

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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