GBP/USD drops to lows near 1.3130 on poor UK retail sales
|The British Pound is now losing the grip vs. the greenback and dragging GBP/USD to fresh session lows in the vicinity of the 1.3130 handle.
GBP/USD offered on data, Brexit
Cable remains depressed on Thursday following lower-than-expected retail sales in the UK economy for the month of September. In fact, headline sales contracted at a monthly 0.8% vs. a forecasted drop of 0.1%. On a yearly basis, sales expanded 1.2%, also below estimates.
Further data saw sales excluding the Fuel component also missing estimates and contracting 0.7% inter-month and rose 1.6% over the last twelve months.
In the meantime, renewed Brexit concerns keep weighing on the Sterling, while the now better tone around the greenback is also putting Cable under further downside pressure.
GBP/USD levels to consider
As of writing the pair is retreating 0.51% at 1.3138 facing the next support at 1.3134 (low Oct.19) seconded by 1.3121 (low Oct.12) and then 1.3045 (100-day sma). On the flip side, a breakout of 1.3228 (high Oct.19) would open the door to 1.3289 (21-day sma) and finally 1.3338 (high Oct.16).
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