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GBP/USD Falling to 1.70 after Soft June Retail Sales

GBP/USD has been stumbling down after establishing the 2014-high at 1.7190. Today, we had UK retail sales figures for June. 

In June, retail sales grew only 0.1% compared to May. Expectations were for 0.2%-0.3%. May's reading was -0.5%, but the Q2 (April-June) reading was 1.6% better than the previous quarter. On the year, retail sales grew 3.6%. 

The sales figures were soft in May and June, but the trend remains strong.

The GBP/USD continued lower after a mini-consolidation during the 7/23 session.
GBP/USD 1H Chart, 7/24

(click to enlarge)

As the market pushes GBP/USD down in a choppy manner we should start getting ready for support first around the 1.70 level. This psychological level is also a support/resistance pivot. 

GBP/USD Daily Chart

(click to enlarge)

Below 1.70 lies a more important support factor, the 2014-trendline. There is also a support/resistance area around 1.6915. The daily RSI has been turning around when it reached 40, which reflects maintenance of the bullish momentum. If the daily RSI approaches 40 again and turns, expect a bullish continuation attempt, especially if price can hold above the 2014-trendline.