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Forex: GBP/USD clings to last support around 1.5500

GBP/USD is currently at 1.5515, off fresh 7-month lows at 1.5474, printed in late NY trade, down so far -1.78% for the week, with daily average range volatility back above the 100 pips per day for last 14 days on average. Pound has become weakest currency among majors for last few trading days, closely followed by Euro and Swiss Franc, while Yen has reversed positions and now is second strongest one in same period.

For the London session ahead key UK retail sales data at 09:30 GMT will surely take center stage for Cable traders, as “Consumer spending is the backbone of the economy as well as a key component of GDP,” says BK Asset Management managing director Kathy Lien. Data is expected to come above previous one, and around the +0.5% as consensus, while G20 meetings going on thru the weekend might provide headlines that shake markets either direction.

In view of CMT and FXstreet.com Independent Analyst Fan Yang: “GBP/USD looks a bit oversold with the CCI at -200, but there is still room until key support around 1.5267, which represents support of a range going back to 2010,” the analyst notes. FTSE futures point for a slightly lower open at the moment, following local share markets in Asia all in the light red.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “a break below 1.5485” would favor “an approach to 1.54 in the short term,” she says, locating support levels at: 1.5485, 1.5445 and 1.5410, while resistance levels at: 1.5510, 1.5535 and 1.5590.

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