GBP/USD clings to modest recovery gains, 1.2700 mark back on sight post-UK data

Haresh Menghani FXStreet

• A modest USD pullback from two-year lows helped bounce of multi-month lows.
• The recovery got an additional boost following the release of UK retail sales data.
• Investors now await the UK PM May’s statement for hints on her departure date.

The GBP/USD pair held on to its mildly positive tone and is currently placed at the top end of its daily trading range, around the 1.2680 region post-UK monthly retail sales data.

With investors still digesting the recent Brexit-related UK political chaos, a modest US Dollar pullback on Thursday helped the pair to stage a modest rebound from the 1.2600 neighborhood and highly oversold conditions.

The steady recovery extended through the early European session on Friday and got an additional boost from the UK macro data, showing that monthly retail sales remained flat in April as compared to a 0.3% decline expected.

On the other hand, core retail sales came in to show a contraction of 0.2% and the yearly growth rate eased to 5.2% from 6.7%, still better than consensus estimates pointing to a reading of -0.5% and 4.6% respectively.

It would now be interesting to see if the pair is able to capitalize on the positive move as investors now look forward to the UK PM Theresa May's statement for hints on her departure date amid disagreements on her revised Brexit deal.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2675
Today Daily Change	0.0018
Today Daily Change %	0.14
Today daily open	1.2657

Trends
Daily SMA20	1.2915
Daily SMA50	1.3021
Daily SMA100	1.3017
Daily SMA200	1.2957

Levels
Previous Daily High	1.2684
Previous Daily Low	1.2605
Previous Weekly High	1.3042
Previous Weekly Low	1.2711
Previous Monthly High	1.3196
Previous Monthly Low	1.2865
Daily Fibonacci 38.2%	1.2635
Daily Fibonacci 61.8%	1.2654
Daily Pivot Point S1	1.2613
Daily Pivot Point S2	1.2569
Daily Pivot Point S3	1.2534
Daily Pivot Point R1	1.2693
Daily Pivot Point R2	1.2728
Daily Pivot Point R3	1.2772

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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