15 Minutes Chart
UK Dec Retail Sales in at -0.1% M/M vs 0.2% estimated, pushing price lower below 1.60. Amidst a day of uncertainty where PM Cameron cancelled his planned speech earlier regarding EU membership, causing panic during early European trade and was the initial catalyst that made price break its consolidation range during Asian trade.
Price continues is journey south with the declining trendline formed during the week respected. We’re currently moving away from the trendline, however due to today being the end of the week, we could still see pullbacks as short sellers close out positions to take in profits in a week that saw continuous GBP weakness. 1.5960 could act as interim resistance against any sharp pullbacks.
The same 1.60 is significant from the Weekly Chart perspective, though a case for a double top can only be confirmed should price hit around 1.58 levels for a move towards 1.54. Keep a look out on next Monday’s levels for any early indication of price heading lower. Should we fail to push lower and see price rallying back up, 1.63 comes back into focus and the double top pattern will be invalidated.
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