Today at 13:30 GMT+4 U.K. retail sales in December is published. Economists expect it to rise 0.2%, in November it was flat. The information is relevant as investors will consider further Bank of England’s policy on quantitative easing. Increase in sales may stimulate price growth; it may inspire the rumors the BoE is about to raise key rate at any moment. If the data is lower than it is expected, it means the consumer demand is shrinking as a result of drop in income, and consequently quantitative easing may rise from GBP 375 bln. Thus, anyway there are prospects for the pound to grow. However, major participants of the market have the last word; they look through the sales of the pound at the moment in terms of bullish market and shops which were liquidated. So we have to take into account technical analysis.
From the technical point of view, after the yesterday’s low at 1.5954 was broken down, target at 1.5931 opens; the second target 1.5903 is support of trendline on the daily chart. The growth is possible after the high of January 4 at 1.6008 is broken down. In this case the growth is possible to the area of resistance of indicator lines and trend bearish line on H4, 1.6038/48.
