FxWirePro: EUR/GBP tests session highs after unexpected drop in UK Retail Sales dents pound
EUR/GBP chart - Trading View
EUR/GBP tests session highs at 0.8588 after the British pound was dented on an unexpected drop in UK Retail Sales.
The UK retail sales came in at -1.4% over the month in May, missing estimates at 1.6% and compared to 9.2% previous.
The core retail sales, stripping the auto motor fuel sales, stood at -2.1% month-on-month, also missing forecasts at 1.5% and 9.1% previous.
On an annualized basis, the UK retail sales rose by 24.6% in May versus 29.0% expected and 42.4% prior.
While the core retail sales increased by 21.7% year-on-year in the reported month versus 27.3% expected and 37.7% previous.
EUR/GBP has slipped lower from session highs at 0.8588 and was trading at 0.8570 at around 09:30 GMT.
Technical bias for the pair remains bearish. Upside was capped at 200H MA. Scope for resumption of weakness.
Next major support lies at 0.85 (Rising trendline). Break below will see drag till 88.6% Fib at 0.8415.