Although UK recent GDP and CPI were better than forecast, today’s release of UK Retail Sales disappointed GBP bulls. The market was expecting only -0.5% change but it came to be -3.2%, which is a significant negative deviation from expected number.
It triggered immediate bearish move in GBP and consequent bullish move in EURGBP. The graph shown below shows that the pair bounced up from confluence support made by lower band of Bollinger and previous swing low. It also shows risk and reward involved in this buy/long trade. I suggest trades to wait for Daily closure rather than setting SL below today’s low in order to avoid getting stopped out because of any temporary intraday moves. Exit in loss only if daily candle closes below today’s low. Its TP should be set at mid-band of Bollinger.