British Pound Outlook Remains Bleak as CBI Survey Reflect Falling Retail Sales

The British pound was generally a laggard versus most of the majors, though GBP/JPY continued rallying, as the Confederation of British Industry (CBI) survey of retailers showed that a net 17 percent saw a drop in sales this month, compared with a net 3 percent saying sales rose in April. For what it’s worth, the UK fundamental outlook remains extremely dire, especially when you consider that S&P said last week that they were downgrading the UK outlook to “negative” from “stable.” Keeping that in perspective, the GBP/USD push above 1.60 may have been nothing more than a false break, and with daily RSI remaining overbought it seems as though the pair may experience a correction in coming days.
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