GBP/USD analysis: failed breakout increases odds of steeper decline

GBP/USD Current price: 1.2928

The GBP/USD pair reached a fresh 8-month high of 1.3047 in the London morning, following the release of strong UK Retail Sales figures, but plunged in the US session, to as low as 1.2889, shedding over 100 pips in a matter of seconds, back to its recent range and down for the day. The pair rallied at the beginning of the day on a technical break of the 1.3000 level, triggered by impressive April retail sales figures. Retail sales jumped by 2.3% monthly basis, and by 4.0% when compared to a year early, beating economists'  forecasts. The pair recovered modestly from the mentioned low and settled a handful of pips above 1.2900, with the failed bullish breakout probably exacerbating the negative mood towards the Pound, moreover if dollar's relief rally extends. Technically, the pair is back to neutral in the short term, as in the 4 hours chart, the price is hovering around an easing 20 SMA, whilst technical indicators eased towards their mid-lines, now heading lower around them.

Support levels: 1.2900 1.2865 1.2830

Resistance levels: 1.2960 1.2995 1.3040

View Live Chart for the GBP/USD

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