GBPUSD: BUY 1.3450, SL 1.3430, TP 1.3550 | 26 May 2025

An event to watch out for today:

9:00 EET. GBP- Change in retail sales volume including fuel costs

GBPUSD:

GBP/USD was flat on Thursday, staying in a tight range just north of the 1.3400 mark as sentiment in global markets suffers the effects of the recent wave of worries that have hamstrung Treasury yields this week. Investors are mainly focused on the United States (US) growing debt problems, the US debt problems could get a new cause of uncertainty(in the wrong direction) as President Donald Trump's ‘big and beautiful’ tax and deficit-increasing budget bill makes its way through Congress.

The last key release this week will be retail sales data for the United Kingdom (UK). UK retail sales are expected to show a third consecutive monthly decline in April, with the median market forecast suggesting a decline to 0.2% m/m from March's 0.4%. On an annualised basis, retail sales will rise to 4.5% y/y from 2.6%, but sterling traders will be watching closely for a slowdown at the front end of the curve.

Markets on both sides of the Pacific will end the trading week on Friday and head into the long weekend. On Monday, banks, brokers and exchanges will not be open due to a double holiday: spring break in the UK and Memorial Day in the US. The economic calendar for next week for the Pound is also noticeably dry, so traders will depend on any changes in sentiment in the broad market.

Trading recommendation: BUY 1.3450, SL 1.3430, TP 1.3550

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