Forex: GBP/USD slightly up at 1.5250

FXstreet.com (Barcelona) - With the 1.5220 area acting as support against further downside after the London opening and UK retail sales report, the GBP/USD retraced its losses and is back at the 1.5250 zone, up by +0.06%. The market is trading under a narrow range today, low at 1.5218 and high at 1.5267, compared to yesterday’s sell off that confirmed 1.5412/20 (recent high and the 38.2% retracement) as an interim high, according to Commerzbank analysts.

Earlier, the UK retail sales report indicated a monthly contraction by -0.7% in March (annualized drop from 2.5% to -0.5%), higher than the -0.8% expected. Excluding fuel, the monthly fall was of -0.8% (consensus of -0.5%) and the annualized figure eased from 3.2% to 0.4% (consensus of 0.9%). The Bundestag lower house approved the bailout to Cyprus with a 487-102 vote this morning in Germany.

“Loss of the 1.5154 uptrend will add weight to the idea that the market has resumed its down move. Below here will trigger losses to the 1.5028 (the 20th March low)”, wrote Commerzbank analyst Karen Jones, pointing to 1.5052 (61.8% retracement) as next support. “A break below here is needed to trigger another leg lower to the 1.4832 March low. Longer term we target 1.4229, the 2010 low”, Jones added.