GBP/USD: Disappointing UK Retail Sales could inflict more damage – SocGen

Sterling is licking its wounds after suffering a 1% blow against the Dollar and 0.8% against the Euro on Wednesday. Economists at Société Généraleanalyze GBP outlook.

The question of whether to buy the dip is not straightforward

The pullback was exacerbated by overbought conditions, and the decline in inflation provided the catalyst for investors to take profits. 

Disappointing UK Retail Sales on Friday could inflict more damage on GBP/USD, pushing it towards trend support at 1.2650. 

The 200-DMA for EUR/GBP runs at 0.8730. The question of whether to buy the dip is not straightforward.