Sterling pair/dollar GBP/USD decreases after reaching a standard level above the moving average for 100 days

• UK retail sales exceed expectations, up 1.7% on a monthly basis in January.
• The American Soding Procurement Managers Index decreases to the shrinkage area, which pulls the compound index.
• Traders make lower discounts than England, which supports more height in the GBP/USD pair.

GBP/USD pair recorded losses during the North American session after the simple moving average test for 100 days at 1.2658. Good economic data from the UK pushed the pair towards its highest level since the beginning of the year (YTD) at 1.2678, before settling at the current instant prices. The pair is trading near 1.2660.

The sterling pound settles near 1.2660 after reaching the highest YTD at 1.2678

The S&G GLOBAL index showed that trade activity in the United States is more weak, despite the high industrial purchasing directors index to February to 51.6, up from 51.2, exceeding expectations. However, the services index disappointed the investor, as it decreased to the recession area from 52.9 to 49.7, prompting the compound index to 50.4 out of 52.7.

In the United Kingdom, retail sales in January exceeded 0.3% estimates, expanding 1.7% on a monthly basis. In the twelve months to January, it decreased from 2.8%to 1%, bypassing expectations, an increase of 0.6%. Other data showed that the indicators of the initial purchases from the S&P came mixed, as the manufacturing index shrinkled while the services sector improved from 50.8 to 51.1.

Mixed data from the UK will make the BOE Bank more difficult. As the bank starts a reduction cycle, inflation rates and wages increased. Consequently, more strength is seen in the GBP/USD pair after traders priced no more than two interest rates this year.

GBP/USD price expectations: Technical Analysis

Due to the background, the decrease in GBP/USD can be considered an opportunity for buyers to enter at a better price. However, the decrease below 1.2600 turns a slightly tilt towards the declining direction, as sellers will challenge 1.2549, before testing the simple moving average for 50 days at 1.2459.

It is worth noting that the RSI index (RSI) is mixed, although it is in the upscale area, and aims to land. Therefore, expect a decrease to the number before buyers resume entering and pay prices up.