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FxPro Forex Analysis: GBPUSD and GBPAUD Analysis – May 24, 2018

Retail sales finally provided some encouraging news for the British economy. The Office for National Statistics (ONS) reported that retail sales grew 1.4% on an annualised basis in April, beating market expectations for a reading of 0.1%. The monthly growth read at 1.6%, more than double the expectation of 0.8%. This follows CPI reported yesterday which was below expectations at 2.4%. Strong retail sales tend to correlate with robust economic activity so this may be seen as an early indication that the U.K. economy is about to leave behind a recent soft patch. The ONS will release GDP data tomorrow which will help set expectations for a possible August rate hike by the Bank of England.

GBPUSD
On the daily chart, GBPUSD is attempting to regain the 1.34 level and a break could see the pair make further gains with resistance at 1.3460 and then the 23.6% retracement level at 1.3550. A sustained recovery will run into a confluence of trend line, Fibonacci and horizontal resistance at 1.3710. However, a drop though support at 1.3315 will see the pair resume the decline towards the double top target at 1.3050 with support at 1.3120.

GBPUSD(£)Daily-24May

GBPAUD
On the daily chart, GBPAUD is finding support on the 200MA and 38.2% retracement of the lows from August at 1.7635. If this level breaks, the pair will resume the downside with supports at 1.7500 and then the 50% retracement at 1.7360. On the flip-side, a reversal above 1.7800 will open the way for gains towards resistance at 1.7900.

GBPAUD(£)Daily-24May


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