UK retail sales unexpectedly fell. The cable formed a distribution pattern in the four-hour chart indicating further downside risk in the near term.
Compared with May 2015, industrial sales were estimated to decreas by 0.2%. Falls were reported by predominantly food stores, other stores, household goods stores and petrol stations.
Technical overview: Earlier, we forecasted that the cable trading pattern will keep on favoring bulls, but the cable made a distribution pattern at yesterday's session.
It closed below 20&50Dsma. Wednesday's buying was not supported by follow up buying . Finally, the cable made a strong ceiling at 1.5700. Until it closes below this level, bearswill try to re-test 1.5450 or even 1.5435.
The cable broke the 3-month ascending trendline and is still trading below it. In the four-hour chart, the cable fell below the bearish h&s pattern. Finally, the cable closde below the neck-line, awaiting for 1.5450 initially.
The 20Wsma is found at 1.5300, 100Dema is found at 1.5450, 200Dsma is found at 1.5415, and 100Dsma is found at 1.5300.
A daily close below 1.5450 is likely to help bears extend thier downward journey towards 1.5300.
Intraday resistance is seen at 1.5530, 1.5550, and 1.5580. Support is found at 1.5500, 1.5470, and 1.5440. Selling is available below 1.5500 and buying is available only above 1.5600.