Cable in trouble heading into US retail sales figure

Brexit fears made a comeback and pushed Cable to a low of 1.4150 levels. The slide was anticipated via regular quick look updates here Quick Look: GBP/USD daily close below 1.4266 wuld be bearish yesterday.

The immediate focus now is on the US advance retail sales print. Markets are reconsidering a possibility of Fed rate hike this year, thus we have had broad based USD rally today.

A better-than-expected data is all that dollar bulls need today, in which case GBP/USD pair would drop to 1.4117-1.41 levels. Here is the daily chart

GBPUSD D1 (03-15-2016 1728).png

Failure to re-enter falling channel followed by bearish break below falling trendline support indicates the spot is at a risk of extending sell-off to 1.4117-1.41 handle.

Bearish invalidations is seen only if spot manages to get back above 1.4228 today, in which case, Cable could again look to re-enter falling channel.

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