The ONS has recently published a negative report on retail sales, thereby reducing to nothing the positive effect of previous retail sales reports. It turns out that the negative tendency keeps affecting the UK retail trade.
January’s readings turned out to be 0.6% below December’s ones. December’s stats indicated a 0.3% decline as well. The ONS also reports that the retail sales in January 2013 are down by 0.6% as compared to January 2012. Despite bad weather, experts had anticipated a 0.5% increase instead of a decline.
Needless to say that investors are concerned about the negative performance. The say the report may the portent of a triple recession in the British economy.
Experts not that negative economic reports along with negative economic performance in the eurozone as well as the threat of rating cuts and referendums in the UK and Scotland keep exerting severe pressure on the British Pound.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of GBPUSD. As you can see, the chart reflects the current economic situation in the UK.
The closest level of support is 1.5392. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1.5688 (as shown below).
