EUR/GBP Drops to 0.7650 After Solid UK Retail Sales Growth
The EUR/GBP
pair faded its tepid bounce to 0.7700 during Asian session and built on
to the Wednesday's sharp slide after the UK retail sales recorded a
solid rebound in the month of April.
According to the data released just a while ago, UK retail sales for
April witnessed a solid growth of 1.3% as compared to a 1.3% decline
registered in March. Consensus forecast did point to a rebound in April,
but the actual print surpassed even the most optimistic estimates.
Earlier during the week on Tuesday, the pair broke-down from its
short-term recent trading range and was knocked down on Wednesday after
the shared currency got a double whammy from rising support for the UK
to remain within EU and hawkish Fed minutes.
After today's UK retail sales data, the pair extended its fall and
dropped to the lowest level since early Feb. to currently trade near the
mid-point of 0.7600 handle.
Technical levels to watch
From current levels the downward momentum seems to drag the pair
immediately towards 0.7615-0.7600 round figure mark support. Although
the momentum seems strong enough to warrant further down-slide, but with
daily RSI reading below 30 is already pointing towards near-term
oversold condition. Hence, the bears are likely to take some breather
around 0.7600 handle.
Meanwhile, attempts of recovery might now confront immediate resistance
near 0.7680-90 zone, which if cleared should assist the pair towards
0.7720 resistance area. This 0.7720 now seems to cap any near-term
recovery for the pair.
