• UK Retail Sales improved as the yoy grew 3.0% in July much above expectations that was estimated at 2.4%. On a monthly basis UK Retail Sales rose 1.1% in July versus a lower consensus of 0.7%. The Retails Sales ex – Fuel mom and yoy also came better than expected at 1.1% mom from 0.6% consensus in July and 3.1% yoy from 2.1% the previous month.
• From a Technical point of view: The EUR/GBP pair has been moving in a downtrend since the beginning of August, as indicated by the blue downtrend line. Currently is testing the 0.8526 (S1) support level and a break below that level should lead the price down to lower support areas. It seems that the pair has the necessary momentum for a further downward movement, since the RSI reading lies in a bearish zone and ADX reading is above 20 indicating bearish directional movement, considering that the –DI has crossed above the +DI.
• Support: The only support level identified on the 1-hour chart is at 0.8526 (S1). The next in line are found from the 4-hour chart at 0.8481 (S2) and 0.8468 (S3).
• Resistance: Resistance is at 0.8556 (R1), followed by the 0.8597 (R2) and 0.8622 (R3)
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