GBP/USD ahead of UK Retail Sales: Will the Pound remain under bearish pressure?
Today at 08:30 GMT will be released a key indicator for the UK economy, as the retail sales will be the market mover during early European session. During June, the indicator posted a worst-than-expected decline to -0.9%, but for July's outcome, analysts are expecting a rise to 0.2% on it's monthly reading. Regarding the yearly basis' data, retails sales could post a very slight decline to 4.2%, according to the market consensus.
GBP traders will be paying attention to this data, as the recent downside pressure on Sterling should make it to fall towards post-Brexit and multi-year low, at the 1.2794 level. The GBP/USD pair is consolidated below the 200 SMA at H4 chart and that moving average is acting as dynamic resistance. If the pair manages to break it to the upside, then we should see a rally to the 1.3438 level, at least in the mid-term. However, our key support to the downside remains located at 1.2794 level.