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GBPUSD : Broke Out From Descending Channel

GBPUSD today got some boost from the upbeat Retail Sales Data. The pair was following downward sloping channel trend prior to the release of data. The data showed that U.K. retail sales increased in the month of February raising optimism over the economic recovery. Office for National Statistics reported that U.K. retail sales rose 1.7% in February beating the economic expectations of .5% increase. Core Retail Sales which excludes automobile sales increased 1.8% beating the forecast of .3% gain. The major portion of the increase in retail sales came from the food store.

On the 4 hour chart of GBPUSD, we can see that the pair was trading within a descending channel and broke out from the resistance trend line of the channel to move in the upward direction. Currently the pair is testing the resistance at 1.6639 and the pair might move back from this resistance. Also US unemployment data coming out at 8:30 AM EDT may provide some confirm further movement of the pair.