A surprise rise in U.K.retail sales in September has triggered a strong surge this morning in the December British Pound. Last month’s figure was reported at 0.6%, this was a complete reversal of the dismal 0.4% decline reported for August. Traders seem to be ignoring the news that the Nationwide Consumer Confidence Index declined in September to 45.0 from the August reading of 48.0. This report represents a poor showing for the economy but really isn’t a surprise since the Bank of England recently voted for additional quantitative easing because the economy was weak. The stunning news is the flip in the retail sales.
Daily December British Pound Pattern, Price & Time Analysis
Technically the British Pound is breaking out to the upside after a relatively sideways week. Based on the main range of 1.6586 to 1.5179, this currency pair is currently poised to overtake a key 50% price level at 1.5883. A close over this level could set up a further rally to the 61.8% level at 1.6049. An uptrending Gann angle from the 1.5179 bottom is at 1.5619 today. This price is providing both support and direction.
