GBP/USD: a belt of strong resistance 1.2800/50 - Scotiabank

Analysts at Scotiabank explained n the case of GBP/USD, that the CBI’s monthly survey of the retail trade reported slightly better than expected sales for Jun (index at 12, from 2 in May and forecast of 5). 

Key Quotes:

"The overall distributive trades survey fell 1 to 17. The BoE has ordered domestic banks to increase bad loan contingencies by more than GBP11bn following the Bank’s latest Financial Stability Report."

"GBP/USD short-term technicals: neutral/bullish–Sterling has perked up through the European session but gains have slowed near yesterday’s peak and the noted 1.26/1.28 range remains intact. 

Short-term trends remains a little more positive of the GBP but there is a belt of strong resistance above the market in the 1.2800/50 range that will curb the broader prospects for the pound while it remains intact. Intraday support is 1.2700/10."