Forex: GBP/USD stands around 1.5850 ahead of UK retail sales

FXstreet.com (San Francisco) - GBPUSD is consolidating within a tight range around the 1.5850 level after recording its sixth straight day of losses ahead of October UK retail sales data in the session ahead. The data is expected to show a -0.1% fall MoM; "This follows rises in four of the past five months for a cumulative gain of 2.4% through this period (5.9% annualized) so is not a significant fall," explains Rabobank International.

Technically speaking, "The GBPUSD trades at its lowest level since early September, breaking below the base of the daily descendant channel, sign of bearish acceleration in the pair," observes Valeria Bednarik, Chief Analyst at FXstreet.com. "Quite close to 1.5850/60 immediate resistance level, failure to overcome it will expose 1.5770 support over the upcoming hours."

GBPUSD last trades at 1.5850 (vs.1.5838), and the analyst identifies resistance at 1.5880 and 1.5915, while support levels are noted at 1.5820, 1.5770 and 1.5830.