GBP/USD jumps back to session tops post-UK retail sales
| • UK monthly retail sales data surpass even the most optimistic estimates.
• A follow-through USD profit-taking slide remains supportive of the up-move.
Having retested sub-1.2700 level in the past hour, the GBP/USD pair regained positive traction and jumped back to the top end of its daily trading range post-UK retail sales data.
The pair caught some fresh bids and was now seen building on overnight modest rebound from over 13-month lows after the latest UK monthly retail sales surpassed even the most optimistic estimates, coming in to show a strong m/m growth of 0.7% as compared to 0.2% anticipated.
Adding to this, total retail sales rose 3.5% over the year (3.0% expected) and core retail sales, stripping the basket off motor fuel sales, also recorded a strong growth of 0.9% m/m, rising 3.7% y/y.
The data provided a minor lift to the British Pound, albeit lacked any strong follow-through amid growing prospects for a no-deal Brexit, albeit a weaker tone surrounding the US Dollar remained supportive of the modest up-move.
Technical levels to watch
Any subsequent up-move is likely to confront fresh supply near the 1.2765-70 region, above which the pair is likely to aim towards reclaiming the 1.2800 handle before eventually aiming to retest weekly tops, around the 1.2825-30 region.
On the flip side, weakness back below the 1.2700 handle would expose the pair head back towards testing 1.2660 area (near 14-month lows set in the previous session) en-route the 1.2600 round figure mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.