Yesterday data on the UK was rather optimistic to limit the pound from falling amid the drop on the market. UK Retail Sales in May grew 2.1% vs. forecast for 0.8% and revised upwardly to -1.1% in April. CBI Factory orders in June was lower than forecast (-18 vs. -15), however, that was better than figures from May -20. As the result, the pound grew 22 points.
Today at 12:30 GMT+4 data on Public Sector Net Borrowing ex Interventions in May is published, forecast 12.7 billion pounds vs. 8.0 billion pounds in April.
Technically, the rebound from the red trend line of support on the daily chart may serve as an impulse of the further growth to the low of June 18, 1.5566 (after the testing level 1.5520 is broken), however, further growth amid weakening data on borrowing is unlike. We expect the price reveres to the intermediate level 1.5448 with further decline to the resistance zone of May 13 and June 3, 1.5380.
