Analysis Market overview

GBPUSD overview 22.01.2021

Sterling falls on weak retail sales data.

The sterling under bearish pressure today as data showed retail sales recovered weakly in December after shops in England emerged from a November lockdown. Retail sales rose only 0.3% in December, much less than economist expectations of a 1.2% increase. The weaker than expected UK retail sales combined with the suggestion that schools may not open until April bodes poorly for the recovery in UK – adding to the bearish pressure on sterling. The pair is also dragged down by the dollar bullishness as the previous risk-on rally is taking a breather today after news of record number of covid-related deaths in Europe and USA darkened the prospects for economic recovery worldwide.

Expect sellers on upward corrections.

Next support to watch – 1.3618

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