Pound losses ground in this Thursday European morning, following a kneejerk in UK data: retail sales fell beyond expected falling 0.9% against the expected 0.4 rise. But overall, the bullish trend prevails and dips are still seen as buying opportunities, considering latest US’s FED decision to maintain QE unchanged. Market is all about selling the greenback and risk appetite with stocks strongly up across the board. The 4 hours chart shows technical indicators correcting extreme overbought readings after yesterday’s 240 pips rally, with RSI still above 70; 20 SMA heads higher offering support now around 1.5970, former weekly high, but chances of a test there are limited to a price acceleration below 1.6030 immediate support.
A recovery above 1.6100 on the other hand, will deny the possibility of a downward correction, and see the pair advancing back towards the 1.6160 highs. View Live Chart for GBP/USD