Thursday’s trading session the currency pair started in a sluggish horizontal movement, being squeezed between the 55- and 100-hour SMAs from the top and the weekly PP at 1.3008 from the bottom. In anticipation of a release of the UK Retail Sales at 8:30 GMT the Pound fell below the above support level towards the 200-hour SMA. But since the data appeared to be better than analysts expected, the pair made a u-turn and started a steady recovery. Accordingly, the second half of the day the rate is expected to spend in attempts to break through the above resistance level, which will be supplemented also by the 20-hour SMA. This scenario is supported by a number of technical indicators, which point out that the pair is oversold.
