Greetings again, Everyone!
The positive importance of The U.K. Retails Sales Data is showing “slight” sign of Stabilization as Actuals of a 1.3% rise clipped the 0.3% Consensus with ease. While this translated into a nice Break of The Queen and Her Major Cross into Appreciation… we would really need to see stronger and stronger Purchasing “Evidence” coming out of the U.K. Consumer over a several-month period to really see Retail Sales as a Bellwether of positive Sentiment and Growth.
Let’s check in briefly with The GBP/USD and The GBP/JPY, and here are our same Hourly Views.
Give The Captures a Click, and Post-Time is 10:45 GMT.
The Magenta Dynamic Support Line did, in fact, Hold for us and become a “new” Transitive Rollover Area of Static Support. Price now clips the 1.6510 Resistance Area, and if we do not see an Impulsive Correction back to the 1.6440’s Levels, then the 1.6600 Handle is on the way via 1.6555 Dynamic Resistance.
A Correction at 1.6600 then has a rather High-Probability of occurring, as Static Resistance at this Level is solid.
The Pound Yen show similar Price Action that is even more “extended” on the IntraDay View as we see a “potential” Double-Top Behavior if Price can fall on the Yen Strength, and bring the Corrective Sentiment further along. Solid Confluence is seen here with the Transitive Rollover Support Area and the Weekly 38.2% Fib Variant that we have held for months now.
The Daily Lower Channel Line may hinder this, and act as Dynamic Support… in the same fashion it acted as Dynamic Resistance over the last two Days of Hourly Candles.
While both of these Units are Overbought on the Hourly Views… taking a “Clue” from the U.S. Jobless Claims and Existing Home Sales Data will be relevant as we see to what “Degree” The Dollar is affected in a couple of hours!
Be sure and check back in for more Updates to follow, so I hope to see All of you soon!
