Sterling Slightly down Ahead of Retail Sales Data, 35+ PIP Volatility Likely; Jan 22, 2021

U.K. Retail Sales Data

U.K. is scheduled to release Retail Sales data at 0700 GMT/1230 IST. It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity. If the actual data is greater than expected, it will be beneficial to sterling. It is important to note here that since last 8 months, U.K. has released this data with positive numbers only.

Let’s see how GBP has reacted during the previous data release:

Dec 18:

Nov 20:

(Important to note here that despite positive readings of U.K. Sales Data, sterling depreciated for that particular time frame)

Technical View:

GBP/USD: The pound trades marginally lower ahead of retail sales data. The pair made intraday high at $1.3735 and low at $1.3708 mark. A sustained close above $1.3730 requires for the upside rally. Alternatively, current downside movement will drag the parity down below $1.3650 mark.

Key Resistances: $1.3745, $1.3776, $1.3802, $1.3844

Key Supports: $1.3684, $1.3632, $1.3552, $1.3490

Take a look and do trade wisely!
Good Luck