Cable dips further following disappointing UK retail sales data

The cable remains in the red for the second consecutive day, extending its pullback from a new one-year high of 1.3044. Weaker-than-expected UK retail sales have increased pressure on the sterling and fueled speculation about a BoE rate cut in August, with current odds at 44%.

Fresh bearish momentum has broken below the recent consolidation floor, around the Fibo 23.6% retracement of the 1.2615/1.3044 up-leg, signaling an initial bearish trend. Further extension below the rising 10DMA at 1.2914 would confirm this signal, and a close below 1.2879, the Fibo 38.2% level, would generate a stronger reversal signal. Additionally, a bull-trap formation above the 1.30 barrier on the weekly chart could heighten downside risks.

Conversely, daily technical indicators remain largely bullish, with moving averages in a bullish setup and strong positive momentum. This suggests that the current pullback could be a correction within a larger uptrend, provided dips find solid support above the 1.2830 zone