GBP/USD retreats from tops, back around 1.3400
- Cable wanes the spike to the 1.3420/25 band.
- The pair keeps the positive note on USD-weakness.
- UK’s Retail Sales surprised to the upside in April.
After advancing to the 1.3420/25 band earlier in the day, GBP/USD has now come under some selling pressure and retreated to the 1.3400 neighbourhood, still posting moderate gains for the day.
GBP/USD up on USD-selling
Cable is reverting yesterday pullback, including a rebound from fresh YTD lows in the boundaries of 1.3300 the figure, at the same time matching December 2017 lows.
The offered bias surrounding the buck today plus better-than-expected results from UK’s Retail Sales during April has lent support to the British Pound and helped spot to briefly move beyond the critical barrier at 1.3400 the figure, where it is now looking to stabilize.
In the meantime, GBP remains vulnerable against the backdrop of a generalized sentiment favouring the US Dollar, while unresolved issues in the Brexit negotiations and political uncertainty gyrating around PM May’s government continue to cast doubts over a sustained up move in Cable.
Later in the session, weekly Initial Claims, New Home Sales and the speech by NY Fed W.Dudley (permanent voter, centrist) are all due in the US docket.
GBP/USD levels to consider
As of writing, the pair is gaining 0.36% at 1.3396 and a break above 1.3422 (high May 24) would open the door to 1.3474 (10-day sma) and then 1.3573 (200-day sma). On the other and, initial contention emerges at 1.3306 (2018 low May 23) seconded by 1.3302 (monthly low Dec.18) and finally 1.3039 (monthly low Nov.3 2017).