GBP/USD re-takes 1.2900 in Asia, UK retail sales in focus
|
The GBP/USD pair caught a fresh bid-wave in Asia and extended its overnight steady rise to reclaim 1.29 handle. However, the bears continue to lurk above the last amid mixed market sentiment and increased nervousness ahead of the key UK retail sales data.
GBP/USD: All eyes on UK retail sales
In the US last session, the spot found support once again near 1.2845 region and staged a solid comeback from there, after a non-favourable FOMC minutes release weighed heavily on the US dollar and Treasury yields.
Meanwhile, a positive surprise seen in the UK jobs report combined with a slack in the US housing sector also collaborated to Cable’s bounce.
So far this session, the GBP/USD pair struggles to take on the recovery above 1.29 handle, as expectations of a drop in the UK retail sales volumes for July continue to undermine the sentiment around the pound.
Also, a recovery in the US yields across the curve dampens the sterling’s attractiveness as an alternative higher-yielding asset.
Data-wise, the main risk event for the major today remains the UK retail sales, while the US dataflow, including the industrial production data will also have a major impact on the prices.
GBP/USD levels to consider
Valeria Bednarik, Chief Analyst at FXStreet noted: “The 4 hours chart shows quite a limited upward potential, given that technical indicators are barely reconverting from oversold levels but still well below their mid-lines, whilst the 20 SMA maintains a sharp bearish slope well above the current level, capping the upside now around 1.2930. Support levels: 1.2830 1.2795 1.2760 Resistance levels: 1.2910 1.2950 1.2990.”
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.