The British Pound will remain an easy target for anxious investors after UK retail sales tumbled by their biggest fall on record in March.
Retail sales in the United Kingdom dropped a staggering 5.1% last month compared to February, reflecting the closures of many stores from March 23 following the nationwide lockdown on March 23. With sales expected to plunge even further in April amid the lockdown and economic data painting a gloomy picture, Sterling could find itself unloved and severely depressed.
Looking at the technical picture, the GBPUSD remains in a very wide range on the daily timeframe with support 1.2200 and resistance at 1.2500. If prices fail to break above 1.2400, a technical correction back towards 1.2200 will be on the cards. Alternatively, an intraday breakout above 1.2400 could swing open the doors towards 1.2500.
GBPJPY breakout setup still in play
It has been the same story with the GBPJPY as the currency found comfort within a wide 350+ pip range. All eyes will be on the support at 132.00 and resistance at 135.70.
The fundamentals moving the GBPJPY revolve around Brexit uncertainty, slowing global growth and risk aversion among many other themes.
A decisive breakdown and daily close below 132.00 should pave a path towards 130.00. Alternatively, a breakout above 134.00 may inspire a move back towards 135.70 and 137.00.
EURGBP eyes 0.8680
Nobody wanted anything to do with the Euro after the European Union summit failed to agree on a much-need stimulus package to jumpstart Europe.
A weakening Euro dragged the EURGBP lower on Friday with prices trading close to the 0.8680 level. Should the downside momentum send the currency pair below 0.8680, the next key point of interest will be at 0.8000.
Alternatively, a rebound from 0.8680 could inspire a move back to 0.8850.
USDCAD balances above 1.4050
Expect the Canadian Dollar to weaken against most G10 currencies thanks to depressed Oil prices.
If the Canadian Dollar ends up weakening, this may result in the USDCAD rebounding from the 1.4050 support level with the first checkpoint at 1. 4250. Alternatively, a breakdown below 1.4050 should signal a move towards 1.3850.
Gold aims for $1735 and beyond
Gold glittered this week, rising towards $1735 as the Dollar weakened and stock markets slipped across the globe.
Appetite toward the precious metal should remain stimulated by global growth concerns, oil market mayhem and EU summit disappointment among many other themes grinding on global sentiment. Investors remain guarded and on high alert amid the coronavirus developments, and this should accelerate the flight to safe have destinations like Gold.
Looking at the technical picture, a solid breakout above $1735 may open the doors towards $1750.
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