- – The British Pound is moving lower and positioned below the 1.2940-20 resistance against the US Dollar.
- – There is a descending channel pattern with resistance at 1.2900 forming on the hourly chart of GBP/USD.
- – Today in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales for June 2017 was published.
- – The outcome was positive, as there was an increase of 1.2% in the Retail Sales (YoY).
UK’s Consumer Credit
Recently in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales for June 2017 was published. The market was positioned for a rise of 0.5% in the sales in June 2017 compared with the same month a year ago.
However, the actual result was positive, as there was an increase of 1.2% in the Retail Sales. It was a lot more compared with the last decline of 0.4%. When we consider the total basis, there was an increase of 0.2% in the sales, which was same as in June 2016. The report added that:
Over the three months to June, food sales increased 3.6 per cent on a like-for-like basis and 4.7 per cent on a total basis. This is the strongest 3-month average since February 2012, and pulls the 12-month total average growth to 2.5 per cent, the highest since December 2013.
Overall, the result was positive, which may push the GBP/USD pair higher, but it is likely to remain capped by 1.2920-40.
GBP/USD Technical Analysis
The British Pound started a downside move from well above 1.3000 and traded below 1.2980 against the US Dollar. The GBP/USD pair declined slowly and moved below the 1.2950, 1.2940 and 1.2920 support level.
The pair traded as low as 1.2854 recently and currently consolidating. Looking at the hourly chart, the pair is following a descending channel pattern with resistance at 1.2900. At the moment, buyers are attempting a close above the 23.6% Fib retracement level of the last decline from the 1.2983 high to 1.2854 low.
Above the channel resistance, the 100 hourly simple moving average is a major hurdle at 1.2918. It also coincides with the 50% Fib retracement level of the last decline from the 1.2983 high to 1.2854 low.
There is also a bearish trend line on the upside at 1.2940, waiting to act as a barrier if the pair jumps higher in the near term. Overall, there can be corrections in GBP/USD, but upsides could be limited by 1.2920-40.Tags: British Pound, GBP/USD Technical Analysis, US Dollar