GBP/USD (a 4-hour chart)
The UK retail sales release indicates that the British prefer to save more than spend. Despite the strong population revenue growth – the June sales decreased by 0.2%. The consumer demand reduction is a negative factor for the state economic growth.
The resistance level of 1.5670 testing was followed by the active prices decrease by 160 points. The support level of 1.5550 was broken through which now acts as a resistance.
The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is 1.5670.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.
The MACD histogram is in a negative territory. The price is correcting.
If the price fixates below the resistance 1.5550, it may continue the downward trend in the short term. The potential targets are 1.5460 and 1.5390.