Sasha Singh
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GBPUSD : Bearish Trend May Emerge

GBPUSD is declining today breaking the key support at 1.6821. The losses came after the data showed that the growth in U.K. retail sales slowed in May weakening the expectations among investors that BOE will increase the interest rates. Confederation of British Industry showed the index of U.K. retailers dropped to 16 this month from 30 in April.

I think currently Housing Market is a big concern for U.K. because of soaring prices. Earlier the British Banker’s Association also showed that banks approved the lowest number of mortgages since last month. Seems like growth in Housing market is slowing down because of the high prices.

On the other hand Dollar is gaining strength as data released yesterday showed that U.S. durable goods order and U.S. consumer confidence performed as expected.

On the daily chart we can see that the pair broke the key support level at 1.6821 and heading towards the next key support level at 1.6717. Also seems like the pair fell below the 50 day SMA however it does not give confirmation of bearish outlook. The pair will confirm the bearish trend if it continues to fall below the 100 day SMA and the support at 1.6661.