GBP/USD analysis: No relief for Pound
|GBP/USD Current price: 1.2698
- Sterling retains the dubious honor of being the weakest currency among majors.
- UK Retail Sales to be out Thursday expected to bounce sharply after June's decline.
The Pound plunged to a fresh yearly low of 1.2661 against the greenback, with the later bounce in the GBP/USD pair capped by selling interest aligned around the 1.2700 threshold. The UK released July inflation figures, with yearly CPI up o 2.5%, as expected, after holding steady at 2.4% in the previous three months. Prices at factory levels increased by 3.1%, while the Retail Prices Index fell to 3.2% from the previous 3.4%. The overall consumer price inflation at 2.5% is barely in line with wages' growth, as average earnings including bonuses, rose by an annual 2.4% in the three months to June. The number is barely enough to keep the economy running, but fell short of being a game changer for the BOE. The UK will release July Retail Sales this Wednesday, expected to post a 0.2% monthly advance after falling by 0.5% in June. Meanwhile, fears of a no-deal Brexit keep undermining Pound's demand. Technically, the pair is down for a second consecutive day, and still bearish according to technical readings in the 4 hours chart, as the pair keeps developing below a firmly bearish 20 SMA, while technical indicators continue to move back and forth within negative levels, lacking directional strength at the time being.
Support levels: 1.2665 1.2620 1.2575
Resistance levels: 1.2735 1.2760 1.2795
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