GBP/USD consolidates near 3-week tops of 1.3245
|- Consolidates the Asian rise.
- USD weakness still underpins.
- Eyes on the Brexit meeting.
- US housing data in focus.
The GBP/USD pair is seen consolidating its latest up move beyond 1.32 handle in early Europe, awaiting fresh impetus from fresh developments on the Brexit issue amid a data-dry UK docket today.
GBP/USD: Upbeat UK retail sales continue to support
Over the last hours, the spot remains strongly bid amid persistent US dollar weakness, triggered by renewed US political jitters surrounding Trump’s election campaign and Russia probe.
Moreover, the bulls continue to cheer upbeat UK retail sales report released a day before, while hawkish comments delivered by the BOE Chief Carney also boosted the sentiment around the pound.
Meanwhile, the outcome of the meeting between the UK PM May and EU’s Tusk will remain in focus for some clarity on the Brexit deal. Also, of note for the pair remains the US housing dataset due on the cards in the NA session.
GBP/USD Technical View
Karen Jones, Analyst at Commerzbank notes: “GBP/USD has eroded the short-term downtrend. Should we also clear the 55-day ma at 1.3239, the risk will increase of a move to 1.3338/43. While it holds here, our attention remains on the 1.3049 2016-2017 uptrend. The 1.3049 level represents the breakdown point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement.”
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