The unexpected drop in U.K. retail sales in June belies a more robust picture as households’ incomes increase. Indeed, retail sales are likely to contribute to GDP growth in the second and coming quarters. While retail sales are volatile month to month, sales have now increased on a rolling three-month basis for the longest period since records began in 1996. Taken together with figures in April and May, retail sales are likely to add 0.04 percentage point to GDP growth in the second quarter, according to the ONS. Source of the news : Bloomberg
Higher Volatility with higher uncertainty
On short-Term the market is ranging between the levels of 1.08 and 1.13, any penetration of the market of one of those levels would push the market further on the breakout direction. where breaking the 1.10 support ( Penetrated it already ! ) will extend the bearish correction to reach 1.0800 levels initial, then 1.0660 and extend to 1.0520 in case breaking the previous level.
The downside breakout would be to test the levels of 1.04s (The lowest level of 2015) and the market then would await any penetration of that bottom which would push the market to the parity exchange.
However, the bullish scenario would be confirmed by the breaking the 1.15s rate on the short-term, crossing this pivotal level would push market toward 1.18 / 1.20 respectively.
The Technical analysis and patterns which is indicated on the above chart for a short to mid - term view
Daily Trend: Down
Weekly Trend: Down