EUR/USD, EUR/GBP and GBP/USD amid weak UK retail sales
Outlook on EUR/USD, EUR/GBP and GBP/USD as UK retail sales come in weaker-than-expected.
EUR/USD consolidates after strong weekly gains
EUR/USD continues to range trade below this week’s 2.5 month high at $1.0895 while remaining above the 200-day simple moving average (SMA) at $1.0806 during a day in which several European Central Bank (ECB) and US Federal Reserve (Fed) members speak.
Strong support below the 200-day SMA at $1.0806 can be spotted between the mid-September and early-November highs at $1.0769 to $1.0756. A rise above this week’s high at $1.0895 would eye the late-August peak at $1.0945.
EUR/GBP close to six-month high
On Thursday EUR/GBP briefly traded in six-month highs at £0.8766 with the cross nearing this level once more on Friday morning following weak UK retail sales, the lowest since the 2021 COVID-19 lockdown. If overcome, the mid-April low at £0.8791 would be in focus.
Support below the 20 October high at £0.874 is seen around the £0.8706 to £0.8701 July and September highs. While the next lower Tuesday low at £0.8689 underpins, the short-term uptrend remains intact.
GBP/USD slips on weak UK retail sales
GBP/USD remains under pressure below the 200-day SMA at $1.2444 following weaker-than-expected UK inflation and today’s soft retail sales data. The mid-October high at $1.2337 may thus soon be retested and could offer interim support. Further down minor support can be seen at the $1.2288 late-October high and along the 55-day SMA at $1.228.
While the next lower $1.2188 low from last Friday underpins, the October-to-November gradual uptrend will remain intact, though. Resistance above the 200-day SMA at $1.2444 lies at Monday’s $1.2506 high.
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