Key Points
- The British Pound after consolidating for some time against the US Dollar moved higher.
- There was a major bearish trend line formed on the hourly chart of the GBPUSD, which holds the key for the Euro.
- In the UK, the British Retail Consortium (BRC) Retail Sales Monitor report was published.
- The result was lower, as there was a decline of 0.5% in the BRC Retail Sales Monitor in June 2016.
Technical Analysis
The British Pound after a nasty decline against the US Dollar found support near 1.2800 and started to consolidate. The GBPUSD pair started moving higher after consolidation, and also broke a major bearish trend line formed on the hourly chart.
The best part for the pair is the fact that it settled above the 200 hourly simple moving average, which is a bullish sign.
There is a chance of a minor downside in the short term, but in that case the pair may find support near the 200 hourly SMA. Moreover, the 38.2% Fib retracement level of the last wave from the 1.2853 low to 1.3185 high may also provide support in the short term.
BRC Retail Sales Monitor
In the UK, the British Retail Consortium (BRC) Retail Sales Monitor, which measures changes in the actual value of retail sales from participating companies with invaluable management information on a regular and reliable basis was reported. The result was disappointing, as there was a decline of 0.5% in June 2016, compared with the same month a year ago.
June’s reading is much lower compared with the last increase of 0.5%. All in all, the GBPUSD pair may decline a few pips in the short term.
If the GBPUSD pair moves down from the current levels, then it could find support near the 200 hourly SMA.
