GBP/USD traded sharply lower over the past week and extended its decline on Monday after UK economic data fell short of the expectations of market participants. The Retail Sales data came out at –1.4%, much lower than the market expected value of –0.3%. Even the consumer sentiment reading for April month fell to –38, indicating that the UK economy is struggling with the interest rate hikes from the Bank of England and the ongoing war between Russia and Ukraine. Consequently, GBP/USD fell 1.44% On Friday and 0.76% on Monday and is now testing the next immediate support level at the 1.27400 mark Tuesday morning.
