GBP/USD Analysis Report: Ahead of the UK Retail Sales, GBPUSD holds onto weekly gains near 1.1900.

VOT Research Desk

In early Friday’s sluggish trading, GBPUSD buyers maintain control around 1.1900 as they prepare for the second weekly gain as traders evaluate the benefits of the UK’s budget plan.

The expectation of seeing more data on UK retail sales, the main driver of the country’s gross domestic product (GDP), may also have favored the Cable couple.

On Thursday, UK Finance Minister Jeremy Hunt announced the Autumn Budget to parliament, outlining spending cuts and tax increases worth £55 billion.

The British diplomat began the announcements by saying; We will take difficult decisions to tackle inflation. In this context, the benchmark US 10-year Treasury yields rose from a six-week low before mostly remaining steady at 3.77%, while the S&P 500 Futures were still undecided at the time of publication.

In light of expectations for a stronger UK retail sales number in October—expected at 0.0% MoM  vs -1.4% previously—GBPUSD is still on the bull’s radar going forward.

But because of the hawkish Fedspeak and the firmer US Treasury yields, the bears are teased, and a bad surprise might be met with a stronger reaction.

Despite recent movement to the north, GBPUSD bulls are still wary until the price breaks through the five-month-old resistance line, which is now around 1.2000 at the time of publication.