GBP/USD: Bulls cheer strong UK retail trade, 1.3200 eyed?

Dhwani Mehta FXStreet

The GBP/USD pair is extending upbeat UK retail sales data inspired gains in the European session, now aiming for a break above 1.32 handle ahead of the US economic releases.

GBP/USD storms through 20-DMA and beyond

Currently, GBP/USD rallies +0.95% to 1.3165, having posted fresh nine-day highs at 1.3172 last hour. The cable witnessed more-than one big figure rally after the pound was lifted across the board on stronger-than expected UK retail volume data.

Retail sales rose 1.4% m/m in July from a 0.9% fall the previous month, which was significantly better than the flat reading expected.

Moreover, a dramatic turnaround in the risk conditions after the European stocks turned positive also boosted the demand for higher-yielding currencies such as the GBP.

Next on tap for the major remains the US unemployment claims and regional manufacturing index due for release in the NA session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3220 (50-DMA), above which 1.3250 (psychological levels) would be tested. On the flip side, support is seen at 1.3096 (20-DMA) below that at 1.3036 (daily pivot).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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