GBP/USD drops further post-UK Retail Sales

The Sterling met extra selling pressure on Friday, now dragging GBP/USD to test lows sub-1.2800 levels following the release of Retail Sales.

GBP/USD offered post-data

The pair saw its correction lower accelerate after UK’s headline Retail Sales contracted more than expected during March, 1.8% (vs. -0.2% forecasted).

Further data saw Sales excluding the Fuel component also contracting in March, down 1.5% (vs. a forecasted 0.4% drop).

GBP/USD levels to consider

As of writing the pair is down 0.11% at 1.2798 and a breakdown of 1.2766 (low Apr.19) would expose 1.2619 (200-day sma) and finally 1.2549 (20-day sma). On the upside, the next  next resistance lines up at 1.2904 (high Apr.18) followed by 1.3125 (high Sep.22 2016) and then 1.3279 (high Sep.15).