GBP/USD bounces on good UK CBI data (Barcelona) - UK CBI Distributive Trades Survey (retail sales) rose much more than expected in June, by 42% following a 21% rise in May, while consensus was pointing to 10% increase.

The London opening found the GBP/USD dropping consistently down to 1.5609 low, from where it bounced off to 1.5630 area with an extra push by UK CBI data. Meanwhile as Europe prepares the summit, EU’s Barnier called for UK integration in the Bank supervision plan.

“Larger picture’s upside rejection at 1.5776, where 200 day MA capped the rally, however, will keep the short-term structure under pressure, as long as the latter caps the upside”, wrote Windsor Brokers analyst Slobodan Drvenica.