GBPUSD falls due to a weak retail report, risks falling to 1.2600
April 22, 2022 @ 10:27 +03:00
GBPUSD fell below 1.3000 to its lowest level in 17 months due to a weak retail sales report.
ONS reports a 1.4% drop in total sales for March after a 0.5% decline a month earlier. Sales excluding fuel fell 1.1% after 0.9% in February and showed a year-on-year decrease of 0.6% – a clear signal of the severity of the current economic situation.
![](https://fxpro.news/wp-content/uploads/2022/04/uk_retailsales_220422-logo.png)
We see that rising prices and wages have little impact on retail activity so far, which may prove to be a complication for the Bank of England in further tightening monetary policy.
Sales returned to their long-term trend level in March after a significant pullback in the second half of 2020. Consumer demand is migrating from retail to services.
![](https://fxpro.news/wp-content/uploads/2022/04/gbpusddaily_220422-logo.png)
Weak sales data interrupted the Pound’s consolidation above the 1.3000 area, hoping that the UK economy could digest decisive rate tightening.
GBPUSD is renewing multi-month lows, building on the momentum formed a month ago when a rebound in the pair was interrupted.
According to the Fibonacci model, the next major stop could be near the 1.26 area, where the 161.8% mark from the initial decline from February to March passes.
The FxPro Analyst Team