GBPUSD: Buy on dips : FxWirePro | May 24, 2018

GBPUSD 0.41% has shown a massive recovery of almost 80 pips from the intraday low of 1.33400 after UK retail sales data. The pair hits high of 1.34215 at the time of writing and is currently trading around 1.34050.

UK retail sales has shown a strong bounce back in Apr 0.00% after cold weather in previous month. The UK retail sales jumped a monthly 1.6% in Apr 0.00% much more than decline of 1.1% in Mar and better than forecast of 0.8%.

The pair declines sharply from intraday high of 1.34216 and near term resistance is around 1.345 any break above will take the pair to next level till 1.3476 (10- day MA)/ 1.3557 (20- day MA)/1.3620. Short term trend is still weak as long as resistance 1.3620 holds. Any break above 1.3620 will take the pair till 1.3680/1.3760.

The major support is around 1.3300 and any break below will drag the pair down till 1.3230/1.3200.

It is good to buy on dips around 1.3395 with SL around 1.3340 for the TP of 1.3500/1.3550.