Support – 1.4308-1.43, 1.4252, 1.4223 (50-DMA)
A weaker-than-expected UK retail sales was largely in line with our expectations and the Pound is now flirting with looking to take out support at 1.4308. The currency pair was losing ground in anticipation of weak data; hence immediate reaction following the data release was somewhat tepid.
Nevertheless, bulls need to defend area around 1.4308-1.43 as a violation there could result in a quick fire drop to 1.4252 levels. Note that a weak data comes after multiple failures to take out inverse head and shoulder neckline level and the combined effect could empower bears.