The pound sterling continues to strengthen against the US dollar to the maximum using the weakness of the latter. The debates in the British Parliament on the Brexit bill passed on January 16-17, passed without surprises, which somewhat calmed the markets and, according to many experts, is Tereza May’s certain success. Now investors are waiting for the start of the second round of negotiations and relevant comments on this matter from the representatives of the parties.
Today, the UK statistics will again be in the focus of investors’ attention. The retail sales data can both support the currency pair by allowing the bulls to reach the level of 1.40, and also have significant pressure by turning the price down. The indicator is expected to be at the level of -0.6%, but given the data on a steady increase in consumer spending, the actual figure may well exceed the forecast level, especially given the relatively low forecast level, thereby supporting the pound sterling.
Technically, the pair still retains potential for growth, but for this it is necessary to pierce and fix above the local maximum at 1.3940, only in this case it will be possible to count on further growth with a target of 1.4000, where most investors will most likely take profits, which will cause market correctional wave.
If today we fail to consolidate above 1.3940, we are waiting for the development of a correctional wave with the first stop at 1.3755.
Review prepared by Fort Financial Services analytical department. Follow our publications!