POUND HITS 1.3607 AFTER UK RETAILS SALES
The British pound spiked to 1.3607 against the U.S dollar following much better than expected monthly and annual UK retail sales figures, further increasing the chances of the BOE hiking rates in October.
Price-action has however pulled back dramatically from 1.3600 level after the sharp uptick on the news, with the pair retracing down to 1.3517, finding support from the pairs key 50-hour moving average.
The GBPUSD pair is currently trading back below the weekly pivot point, found at 1.3553, and has also created a bearish double-top pattern formation on the price-charts.
Key technical support below the 1.3500 level is found at 1.3463, 1.3420, with further support below the 1.3400 level coming from the pairs 100-week moving average, at 1.3380, and 61.8 Fibonacci retracement level, at 1.3340.
Once above the 1.3553 level, intraday GBPUSD resistance is found at 1.3573, 1.3607 and 1.3618. A break above the current yearly high should provoke buying interest towards the 1.3650, 1.3680 and 1.3710 technical levels.