GBP had a great fall after Retail Sales report today which was expected to be 1.0% and which came out to be 0.3%. A deficit of -0.7% pup pressure on GBP to have a great fall from 1.2520 to 1.2410 and continuing to go downwards. Yesterday USD Building permits had a positive result of 1.29M which was expected to be 1.23M; Philly FED Manufacturing Index was 43.3 which was expected to be 18.5; and Unemployment Claims was 239K which was expected to be 243K. With USD and GBP Fundamental news context, GBP fall was quite predictive after Retail Sales report. The price is expected to fall much lower as USD is stronger today.
Now let us look at the technical view, currently the price is heading lower towards 1.2120 after breaking below 1.2400-20 area. If the market presents a daily close today below 1.24, it is expected that the price will move much lower towards the next support at 1.2120. On the other hand, if the price rejects from 1.2400-20 with a bearish rejection we will be looking forward to buy with a target towards 1.2520 on the next week.
The material has been provided by InstaForex Company – www.instaforex.com