GBP/USD

The UK CBI realized sales were slow in May, the index of retailers dropped to 16 from 30 in the previous month. The pound fell sharply to a one-month low taking parallel support at 1.6696 (April 14 low). In yesterday's session, it broke the supporting trend line, breaking the previous swing low (1.6732 May 15) and closing below the 50-day SMA. On the down side, if the cable breaks 1.6696, it will extend its fall to 1.666 initially, below this, 1.66, 1.6554 and 1.6465 will be on the cards. We expect this week's low can be made above 1.6635, as of now this week's low is printed at 1.6698, next round of selling is below 1.6696 levels.

We expect the pair to shift the gear towards the pullback mode, it can attain 1.6732, 1.6745 and 1.6764 levels, this view will reject below 1.6695 levels. The cable shows strong momentum above 1.6730 levels. On the down side, if the pair breaks 1.6695, it will fall to 1.666 and 1.6613 levels.

NOTE- Safe traders, buy above 1.6732.

Sell below 1.6695- panic is below 1.666.