GBP/USD trims gains above 1.3100 post-data
|- Cable moves higher despite poor UK data results.
- The pair finds support near 1.3080 for the time being.
- UK’s headline Retail Sales contracted more than expected in September.
After dropping to the 1.3080 in early trade, GBP/USD has now managed to regain the 1.3100 handle and above on renewed USD-weakness.
GBP/USD looks to EU Summit, Brexit
Cable gained some buying interest amidst a bout of selling pressure hitting the greenback following the opening bell in Euroland.
The Sterling met dip-buyers despite UK’ headline Retail Sales contracted at a monthly 0.8% in September vs. a 0.4% contraction forecasted. On a yearly basis, sales expanded 3.0%. Further data saw Core sales also contracting 0.8% inter-month and up 3.2% over the last twelve months.
Further out, GBP should particularly remain in centre stage in the next 48 hours, as the 2-day EU Leaders Summit kicks in today and has Brexit on top of the agenda.
GBP/USD levels to consider
As of writing, the pair is losing 0.02% at 1.3113 and a breakdown of 1.3076 (low Oct.18) would open the door to 1.2994 (55-day SMA) and finally 1.2921 (low Oct.4). On the upside, the next hurdle is located at 1.3259 (high Oct.12) seconded by 1.3299 (high Sep.20) and then 1.3364 (high Jul.9).
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