GBP/USD back below 1.500, UK Retail Sales eyed

FXStreet (Mumbai) - Cable gave back previous gains and fell back to intraday lows in the early European morning, as the sterling failed to resist the USD strength ahead of crucial retail sales data from the Britain.

The GBP/USD pair traded at 1.4988 levels, recoding -0.15% loss on the day, retreating from day’s high clocked at 1.5025 levels in the early Asian hours. GBP/USD is expected to remain cautious as traders now focus on the UK’s retails sales numbers later in the day for fresh momentum on the pair. The total retail sales are expected to have fallen back 0.6%, down from 1.6% in November.

The GBP/USD pair tumbled to fresh 18-month lows of 1.4969 levels yesterday as a rub-off from EUR/USD after the ECB unveiled its expanded asset purchase program.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5025 (Today’s High) above which gains could be extended to 1.5080 (5-DMA). On the flip side, support is seen at 1.4969 (Jan 22 Low) below which it could extend losses to sub 1.4900 levels.