Key Points
- The British Pound after trading as low as 1.3068 against the US Dollar found support and traded higher.
- There is a bearish trend line formed on the hourly chart of the GBPUSD pair, acting as a hurdle for the pair and preventing the upside move.
- Today in the UK, the Retail Sales report was released by the National Statistics.
- The result was disappointing, as there was a decrease of 0.9% in June 2016, more than the forecast of -0.6%.
Technical Analysis
The British Pound recovered well from the 1.3068 low against the US Dollar, but it found sellers near a major resistance area. There is a bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a resistance and stopping the upside move.
The pair is currently trading down, but finding bids near the 21 hourly simple moving average, and the 50% Fib retracement level of the last leg from the 1.3068 low to 1.3276 high.
A break below the 21 hourly SMA may call for more losses in the short term.
UK Retail Sales
Today in the UK, the Retail Sales, which measures the total receipts of retail stores and reflect the rate of changes of such sales was released by the National Statistics. The forecast was slated for a decline of 0.6% in June 2016, compared with the previous month.
However, the outcome was disappointing, as there was a decrease of 0.9% in June 2016. The report stated that the “The volume of retail sales in June 2016 is estimated to have increased by 4.3% compared with June 2015. The underlying pattern in the quantity bought, as suggested by the 3 month on 3 month movement, increased by 1.6%”.
Overall, the report was not positive at all and had a negative impact on the market sentiment for the British Pound.
