The British pound has risen, with GBP/USD trading at 1.3484, marking a 0.49% increase. The currency has climbed 1.5% this week, reaching levels unseen since February 2022.

April’s retail sales figures exceeded forecasts, with annual sales rising 5%, up from a revised 1.9%. This marks the quickest growth rate since February 2022, surpassing the predicted 4.5%.

Current Gbp and Usd Trend

GBP/USD is trading near 1.3500, its highest since February 2022. The technical outlook suggests overbought conditions, but corrective attempts may remain brief.

In April, UK’s retail sales increased by 1.2% monthly, beating the anticipated 0.2% rise. This robust data bolstered Pound Sterling at the start of the European session.

The currency reached a high of 1.3500, prompted by favourable UK retail sales. A bullish continuation pattern is evident on its weekly chart, surpassing key resistances at 1.3434/44.

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With sterling reaching its strongest point in over two years and shaking off forecast expectations in the retail sphere, attention now shifts to whether this momentum has the stamina to extend into the coming sessions. Retail sales in April did more than simply print a better number—they delivered a jolt. Not only did the annualised figure jump to 5%, but the monthly pace leapt six times beyond what economists had called for. An increase like that, up 1.2% month-on-month when 0.2% was expected, doesn’t materialise without feeding bullish sentiment in volume-based trades.

This upward push through the 1.3434/44 resistance range shows that recent sentiment has been anything but hesitant. Price reaching 1.3500—not just testing it but staying up there—indicates that technical traders have been comfortable rewarding that optimism. The weekly chart moves suggest a clear continuation structure, which tends to invite fresh entries or reentry from positions closed too early. Predictably, some metrics are flashing overbought. In the near term, that could lead to a stretch of narrow retracements or shallow dips, though based on where the volume came in and the type of macro data behind it, there’s little sign of deeper corrections taking hold without new catalysts.

Future Directional Trades

Given that wage growth, inflation and central bank tone haven’t yet taken a bearish tilt, the strength of the pound doesn’t appear to be hanging on unstable foundations. But patience may need to be tightened in, especially for those trading with short-dated expiry or high leverage. With prices pressing against post-2022 highs, many order books will likely reposition. That increases the chance of intermittent volatility around the same levels already shaped by previous sellers.

For directional trades, the current signal leans towards continuation rather than reversal. That doesn’t mean uninterrupted upward movement—it never does—but it does shift the burden of proof back onto the sellers. Any fresh shorts would need to demonstrate lasting influence beneath minor retracement zones if we are to see deeper pullbacks. Otherwise, we continue to lean into supportive data until proven wrong.

If you are engaging in outright directional positions, consider nearby support placement near the recently cleared 1.3430s, as that band may now function as a reference for reversals or bounces. Anyone trading spread positions might find it worthwhile to widen legs, especially with implied volatility edging down and directional bias persistent on larger timeframes.

Fundamentally, there is still room for surprise—positive or negative—in next week’s labour market updates or any BOE commentary that diverges from present consensus. Until then, price action remains the driver, and the technical message is firm.

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