Quick look at Cable ahead of retail sales release

GBP’s drop to 1.4060 has left currency pair oversold as per hourly and 4-hour RSI, hence prices may see technical correction that could attempt to cut through 1.41 handle. A subsequent acceptance above 1.41 would expose rising trend line hurdle at 1.4160.

Conversely, a drop to 1.4032-1.43 appears likely on a weaker-than-expected retail sales figure. But, given the oversold nature of intraday RSI, dips should be bought into for a corrective rally to 1.41-1.4160 lvls.

Only a convincing breach of 1.40 support wuld signal continuation of the four-day losing streak.

Trade recommendation – buy the dips for 1.4-1.4160

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