Forex. GBP/USD trading forecast and signal for today, April 26
At the beginning of the new week, pound/dollar is trading at 1.3875.
On Friday, the British currency recovered from a sharp drop the day before. The adjustment began after the publication of indicators that recorded a strong increase in retail sales. The latest figures show that the UK economy may already be recovering from its biggest annual decline in 300 years. British retail sales rose sharply last month as consumers prepared for the partial lifting of quarantine restrictions against the coronavirus. According to the Office for National Statistics, sales in March jumped by 5.4% compared to February, with sales in clothing stores rising particularly strongly. Economists polled by Reuters had expected a 1.5% increase from the previous month.
British consumer sentiment rose this month to its highest level since the crisis began, as the country's economy partially recovered. The GFK consumer confidence index rose to -15 in April, the highest reading since the survey was conducted in early March last year, before the country was quarantined. The data provides further evidence of a return to normalcy as quarantine restrictions in the UK ease. At the same time, both manufacturers and service companies report a rapid increase in pressure on prices. The Bank of England has already promised to closely monitor the dynamics. These prices will inevitably lead to a higher rate of consumer price growth, although there is great uncertainty about how long the inflationary impact will last.
Trading signal for GBP/USD
In the forecast, pound/dollar is expected to decline to the levels of 1.3850, 1.3825 and 1.3800.