News & Analysis / Analysis / GBP/USD Plunges As Downbeat UK Retail Sales Weigh

GBP/USD Plunges As Downbeat UK Retail Sales Weigh

FXOpen

The Great Britain Pound (GBP) extended downside movement against the US Dollar (USD) on Thursday, for the seventh day in a row, dragging the price of GBP/USD to less than 1.7015 following the retail sales news. The sentiment however remains bullish due to Higher High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.7013. A support may be noted around the current level, the 23.6% fib level ahead of 1.6950, the 55 Simple Moving Average (SMA) and then 1.6913, the 38.2% fib level as demonstrated in the following chart.  

GBPUSDDaily

On the upside, the pair is likely to face a hurdle near 1.7095, the intraday high of yesterday ahead of 1.7191, the swing high of the last major rally. A break and daily closing above the 1.7191 resistance area could spur a renewed buying interest, validating a fresh rally towards the 1.7300 milestone.

Britain’s Retail Sales

The retail sales in UK declined unexpectedly to 3.6% in June as compared to 3.7% in the same month of the year before, down beating the median projection of 3.9% increase, a report by the National Statistics Office revealed today. Generally speaking, higher retail sales are considered positive for the economy and vice versa. Thus, a worse than expected actual reading increased the ongoing selling pressure in the price of cable.

US Jobless Claims

The US Labor Department is due to release the jobless claims report today. According to the average forecast of different economists, the number of people of applied for the jobless incentives, during the week ended on July 18 remained 308K as compared to 302K in the week before. Generally speaking, higher jobless claims are considered negative for the US Dollar hence a worse than expected actual outcome will be considered bullish for cable.

Conclusion

Considering the overall technical and fundamental outlook, selling the pair on rallies could be a good option in sort to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.10762
1.10763
Trade
GBPUSD
1.30923
1.30926
Trade
AUDUSD
0.62633
0.62638
Trade
USDJPY
145.971
145.979
Trade
USDCAD
1.40874
1.40878
Trade
More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis

USD/CHF Falls to Its Lowest Level in Nearly Five Months

Today, the exchange rate of one US dollar against the Swiss franc dropped below 0.87000 francs—its lowest level since early November 2024.

Since the start of 2025, the USD/CHF pair has declined by more than 4%.

Why

Indices

S&P 500 Index Hits 2025 Low Following Trump's Tariff Announcement

As shown on the S&P 500 Index (US SPX 500 mini on FXOpen) chart, the benchmark US stock index dropped below 5,450 points for the first time in 2025. This decline reflects the US stock market’s

Forex Analysis

Interest in the Dollar Declines Amid Trump's Escalating Trade Wars

The tariffs introduced by Trump yesterday on imports from various countries—20% on the EU, 34% on China, and 46% on Vietnam—have heightened uncertainty in the currency markets. As expected, these measures have contributed to increased volatility in major

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.