The UK’s retail sales declined by 2.1% in May as opposed to the 5.2% growth seen in April. Some observers say that April’s shopping boom was connected with Easter and Royal Wedding. However, May’s weak data confirm that the overall consumer confidence is still weak.
The high rate of inflation, the low pace of income growth and the uncertainty about the consequences of the budget reduction - all that has a negative impact on consumer confidence and makes the British households reduce their spending.
FOREX.
GBPUSD keeps rallying in long-term perspective. The experts from the Department of Masterforex-V TS explain that the currency pair has already completed a retracement of H8 and formed a bullish momentum of H2 along the long-term uptrend (as well as the “moment of truth” for the momentum). A bullish FZR of the same wave level will indicate that the market is going to update May’s high. In this case 1,6546 and 1,6746 will become resistance levels.
If the upward scenario is cancelled GBPUSD will continue retracing in the form of the “Hound of the Baskervilles” pattern (by Elder/MF) of wave level H16 while 1,6057 will turn into support.
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