GBPUSD extends post-Fed rally; eyes retail sales / BOE
Cable remains firm on Thursday and extends strong post-Fed rally, breaking above 10SMA (1.3416) which capped Wednesday’s rally and generating bullish signal.
Fresh bullish acceleration pressures barrier at 1.3455 (Fibo 61.8% of 1.3549/1.3302 downleg) and break hear would further encourage bulls for probes above 1.3500 and possible extension towards 1.3549 (01 Dec peak).
Daily studies are entering full bullish mode and being supportive for further advance, with downside being supported by 4-hr cloud (spanned between 1.3415 and 1.3385).
UK retail sales and BOE policy decision are key events for sterling today.
Retail sales are forecasted to rise in November (benchmark m/m 0.4% f/c vs 0.3% in Oct; core 0.5% f/c vs 0.1% in Nov), with release upbeat release expected to further boost pound.
Conversely, sterling could be deflated on retail sales miss.
The Bank of England is going to announce its first policy decision after raising rates last month for the first time in more than a decade.
Wide expectations are for unchanged policy on today’s meeting, with much slower pace of tightening expected from BOE, compared to US Federal Reserve.
Investors will be also looking for BOE’s stance about Brexit, which is mostly expected to stay neutral.
Res: 1.3455; 1.3491; 1.3520; 1.3549
Sup: 1.3415; 1.3385; 1.3368; 1.3305