Gbpusd Struggles As Risk Appetite Improves

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Gbpusd Struggles As Risk Appetite Improves

GBP/USD Struggles Above 1.24 As Risk Appetite Improves

The GBP/USD is trading above the support level of 1.24, but it looks like the pair has reached the upper limit of its consolidation phase.

The pound is struggling against the US Dollar and has failed to make any new advances. This comes at a time when the market's risk appetite has improved, which is actually good for the GBP. However, it appears that the Pound has failed to materialize this opportunity against the USD.

GBP/USD Up By 1.65%

In the last few days, the GBP has gained almost 2.25% against the greenback. However, the recent correction has erased some of the gains, which now stand at 1.65%.

The market's mood is now risk-on after the rumors of 'no more rate hikes' from the Fed. Despite this opportunity, the GBP/USD is stuck in a limited range, which can be attributed to the weak UK data as of late.

In October, the UK retail Sales data declined on a MoM basis by almost 0.3%, which is a sign of less consumer spending.

On a month-on-month basis, the market was expecting the UK retail sales to jump by 0.3%. However, the actual value of -0.3% surprised the markets, which is yet another reason for GBP's weakness.

On an annual basis, the decline in UK retail sales was even worse as the reading went from -1% to around -2.7% in October. In fact, the annual retail sales in the UK have even crossed lower than the forecast of around -1.5%.

Next week, the attention of the market will be on the meeting minutes from the Fed, which will shed more light on the central bank's thinking process.

The bottom line is that the GBP/USD is up for the week by 1.65%, and it looks like the Pound has maintained its ground despite dismissal data.

In the short term, a bullish trendline can be seen, which started from 1.22 (the low of last week). This line appears to contain the upside during the intraday action, while the 50-SMA also appears to be playing a big role. However, the 200 SMA on the GBP/USD H1 has flatlined, which suggests that the momentum is fading.

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