The Great Britain Pound gained strength against the U.S dollar after official data showed that retail sales in the U.K. skyrocket by 1.3% in April, more than double forecasts for a 0.5% increase, driven by higher food sales over the Easter holiday which triggered demand for the single currency.
Also the pound received an additional strength after the minutes of the Bank of England’s May meeting noted that some Monetary Policy Committee members believe the decision on when to raise rates is becoming more stable, indicating that they are becoming more hawkish about the argument for hiking interest rates.
Intraday bias remains on the upside after price made resistance at 1.69199 before retracing down all the way back to test support 1.68540 and then bounced back to the upside. More buying is expected and a break of 1.69199 could send trigger more demand and send price to 1.69940 resistance zone. Moreover 21 and 55 EMA with MACD and RSI oscillators shows sign of bullish continuation on the 1hour and 4hours chart.
However a key economic indicator to watch out for which is scheduled for tomorrow is the GBP Second Estimate GDP q/q. Economist are expecting a no deviation release data as the previous and forecast are both inline. However if we see an improved data coming out for the release, this could boost the GBP’s strength.