FXstreet.com: “Forex: GBP/USD consolidates losses below 1.5950”
FXstreet.com (Barcelona) - The sterling has left behind the psychological level at 1.6000, and is prolonging its intraday decline, accelerated after the poor data out of the UK retail sales during December.
Phil McHugh, Senior Analyst at Currencies Direct, comments, "It's been a brutal week on the British high street. HMV and Blockbuster joined Jessops & Comet in administration, putting thousands of jobs at risk. Today's figures were more in focus than usual given the tough trading conditions as UK retailers hoped for a boost following the crucial Christmas trading period… Consumers are not spending and growth is stagnant, so a fall in the pound will probably be a good result for the Bank of England to help alleviate a flat economy that has failed to respond to the measures already implemented."
The cross is now losing 0.37% en 1.5931
Next support levels line up at 1.5920 (low Nov.22) en route to 1.5828 (low Nov.15) and then 1.5826 (low Sep.5).
On the upside, a break above 1.6060 (MA10d) would expose 1.6112 (MA21d) and finally 1.6156 (high Jan.14).
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