Alex Borzak
⬤ Strong retail numbers keep GBP/USD elevated. December's UK retail sales came in better than expected, giving the pound enough momentum to hold above recent support zones. The pair is now sitting just below the psychologically important 1.35 mark, testing whether it has the strength to push higher or if it'll settle back into familiar territory.
⬤ Resistance is proving stubborn around 1.3520–1.3530. While the pair keeps knocking on the door of 1.35, it hasn't managed a clean break yet. The January high near 1.3568 looms above as the next hurdle. The climb has been steady rather than explosive—suggesting the market is still feeling things out rather than committing to a full breakout.
⬤ Support levels are holding firm on pullbacks. If buyers lose steam, there's a safety net around 1.3440, with stronger support closer to 1.3400. Without a decisive move above 1.35, GBP/USD could end up stuck in the 1.34–1.35 range that's become its comfort zone lately.
⬤ PMI data could be the next catalyst. Upcoming economic reports will likely determine whether the pound can build on recent gains or if consolidation continues. A sustained hold above 1.35 would open the door for more upside, but hesitation here could mean more sideways action. With price at a technically sensitive spot, the next data release could tip the scales either way.
Alex Borzak
