GBP/USD remains capped by 1.5700

FXStreet (Buenos Aires) - GBP/USD remained capped by the 1.5700 figure for a second day in-a-row, having been as low as 1.5602 daily basis, following the release of the UK Retail Sales data. In July, Britain's retail sales rose 0.1%, below market’s expectations of a 0.4% advance, up 4.2% on the year, slightly below the 4.4% forecast.

Nevertheless, the pair recovered the lost ground, ending the day right below the critical figure, and supporting additional advances, on a break above 1.5715, the immediate resistance.

GBP/USD technical perspective

“Short term, the 1 hour chart shows that the price has bounced from a flat 20 SMA, whilst the technical indicators are aiming higher above their mid-lines, maintaining a tepid bullish slope”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart the price has managed to hold above a mild-bullish 20 SMA, whilst the Momentum indicator turned sharply higher from the 100 level and the RSI indicator slowly advances around 58, all of which suggests further gains are likely, up to the 1.5770 strong static resistance level”.

Support levels: 1.5685, 1.5650 and 1.5620. Resistance levels: 1.5715, 1.5740 and 1.5770.