Another weight on the pound’s neck: the volume of sales rose by only 0.1% in June. Year over year, it is a rise of 3.6%. The United Kingdom was expected to report a modest rise of 0.2% in retail sales during the month of June, after a drop of 0.5% in May (before revisions). The early elimination of England’s team from the World Cup likely had an adverse impact on sales.
GBP/USD was on the back foot in recent days, trading on low ground but keeping a safe distance from the critical 1.70 level. After the publication, the pair slides. The low so far is 1.7008.
Excluding automobiles, sales dropped by 0.1% and rose 4% year over year. These numbers are also below expectations. These figures have negative implications on the big number tomorrow.
Tomorrow we have the all important release of GDP growth for Q2. Stay tuned for a preview about the event.
1.7060 serves as resistance, followed by 1.71. Support below 1.70 stands at 1.6940. For more, see the GBPUSD forecast.
Chart:
Yesterday we had the MPC Meeting Minutes shake the pound and eventually send it lower.
