Sterling recovery stalls following strong US data

The UK Pound has not yet recovered, and its previous attempts at rising above the 1.2500 mark stalled earlier on Monday. The pair has given in to the widespread strength of the US Dollar following the announcement of positive US retail sales data, and is currently trading at 1.2456, up only +0.10.

US consumer spending in March exceeded forecasts, which is another proof that the country’s economy is doing well. Beyond that, increasing demonstrations against the expansion of the Middle East conflict serve as more evidence in favor of the US dollar as a safe haven.

Technically, the pair is currently being challenged at 1.2440, the bottom of the monthly falling channel, which bears have driven it back to. The low from last Friday, at 1.2430, is exactly below that. A clear break of that support area clears the path towards 1.2370. Up till 1.2220, there is no further support.

On the upside 1.2505 level should be cleared to advance towards 1.2565, where an unmitigated order block may provide a fresh boost for bears.