Where now for the pound?
Well , you know what they say, three strikes and you are out ! Will this be the case for the GBP?
We have had three pieces of poor data out for the UK this week. On Tuesday average earnings missed at 2.8% vs expected 3%. Yesterday CPI missed at 2.5% vs an expected 2.7% and now a very poor reatail sales figure has come out at -1.2%.
With the GBP/USD having pulled back from overhead resistance at 1.43000 , it has not initially dropped any further today on the poor retail sales figures. Understandably , with such unusual weather having hit the UK, traders have looked through the poor headline figure as more indicative of the UK's poor weather as opposed to it's poor retail sales.
So, what's next for the GBP/USD. Well, looking ahead the calendar is pretty light next week so, bearing in mind strong GBP/USD seasonals I posted earlier we may see at least a retest of the 1.43000 level, IF, and it is an IF price can gain traction. Looking to buy GBP/USD on this week's dip may prove a decent play...