Pound Struggles at 1.5700 Resistance Amid Weak Retail Sales
Aug, 21st 05:35
The GBP/USD pair remained capped by the 1.5700 figure for a second day in-a-row, having been as low as 1.5602 daily basis, following the release of the UK Retail Sales data.
In July, Britain’s retail sales rose 0.1%, below markets expectations of a 0.4% advance, up 4.2% on the year, slightly below the 4.4% forecast.
Nevertheless, the pair recovered the lost ground, ending the day right below the critical figure, and supporting additional advances, on a break above 1.5715, the immediate resistance.
Talking about the short term, scenario, the 1 hour chart shows that the price has bounced from a flat 20 SMA, whilst the technical indicators are aiming higher above their mid-lines, maintaining a tepid bullish slope.
In the 4 hours chart the price has managed to hold above a mild-bullish 20 SMA, whilst the Momentum indicator turned sharply higher from the 100 level and the RSI indicator slowly advances around 58, all of which suggests further gains are likely, up to the 1.5770 strong static resistance level.
Meanwhile the GBP/CAD ended the day slightly lower as while the Pound maintained its range, the Canadian dollar strengthened on an intraday advance in oil prices.
Nevertheless the cross held to most of its latest gains, and holds above the 2.0500 figure, although the short term picture maintains a mild negative tone, with the price developing below a bearish 20 SMA, and the Momentum indicator heading south below its 100 level.
In the same chart, the RSI indicator stands flat below 50, presenting a neutral stance. In the 4 hours chart, however, the pair holds a few pips above a mild bullish 20 SMA, whilst the technical indicators aim slightly higher around their mid-lines, maintaining the downside limited.