GBP/USD off highs, dips below 1.36 mark despite weaker US data
|The GBP/USD pair failed to capitalize on disappointing US data and faded a bullish spike back above the 1.3600 handle.
The pair jumped to 1.3610 level on pretty dismal consumer spending data, which dampened optimism over the strength of the economy. In fact, monthly retail sales fell 0.2% m-o-m in August, while July growth rate was also revised down from +0.6% to +0.3% m-o-m.
Meanwhile, a big miss on the US industrial production data for August pushed the greenback lower across the board, but did little to provide any fresh bullish impetus to the major.
Possibilities of some profit-taking ahead of the weekend, and especially after the pair's post-BoE upsurge of around 450-pips over the past 24-hours, seems to be only factor behind the pair's retracement from post-Brexit highs.
Today's US economic docket also features the release of Prelim UoM Consumer Sentiment, which would be looked upon for some immediate respite for the US Dollar bulls and might trigger some additional long unwinding pressure later during NY trading session.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet writes: "Further gains seem unlikely, but an extension up to 1.3632, where the pair closed on June 24th 2016, after the market new Britons voted for a Brexit, is possible. Back to the 4 hours chart, technical indicators have lost upward strength, so far having turned flat, somehow anticipating some consolidation/a downward correction ahead, with a steeper correction expected on a break below 1.3530 the main support from here."
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