UK retail sales beat forecasts, GBP tumbles
|GBPUSD, H1
UK retail sales rebounded more than expected in June, aided by a warm-weather prompted rush on seasonal items. The headline sales figure rose 0.6% m/m, rebounding from a 1.2% m/m contraction in May, which was the biggest negative print in four years. The y/y figure rose 2.9%, up from a 0.9% y/y gain in the month prior. Sterling rallied in the initial minute or so following the release, but has since more than given back those gains, by presently showing a 0.5% decline against the dollar and a 0.4% loss to the euro. Negative real wage growth is likely to keep continue to blight the performance of the retail sector in the months ahead.
Cable logged a high of 1.3019 following about 35 pip spring on UK retail sales data, which showed a forecast-beating rise of 0.6% m/m. The run higher lasted little more than a minute, making a Long Legged Doji candle in the Hourly chart, and the pair has subsequently tumbled to a four-day low at 1.2955. Hence a SHORT hourly position was taken after the pair had a strong bearish candle and manage to break the lower Bollinger bands pattern along with the 200-period SMA. Hence entry was at 1.2953, while Targets were set at 1.2920 and 1.2890. Support was set at 1.3000, which is the 61.8 Fibonacci Level set since July’s lowest price.
Nevertheless, Parabolic SAR remain negative since July 18th in both hourly and 4-hour charts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.