- GBP/USD is sharply higher, well above 1.2100.
- UK Retail Sales came in above expectations in July.
- Yield of the UK 10-year Gilt rebound to 0.44%.
The unexpected return of the buying interest around the Sterling is lifting GBP/USD well above 1.2100 the figure, clinching at the same time fresh multi-day peaks.
GBP/USD boosted on UK data
Cable is reversing two consecutive daily pullbacks, surpassing the 10-day SMA at 1.2107 and managing to retake the 1.2150 region on renewed and strong buying pressure in the British Pound.
GBP gathered unexpected traction after UK Retail Sales surprised to the upside during July, expanding at a monthly 0.2% when comes to the headline print and also up 0.2% inter-month from the Core reading.
There is no relevant news around Brexit. Latest report said J.Corbyn’s plan to call for a no-confidence vote on PM B.Johnson has been rejected, as expected. Corby’s plan included snap elections, a delay in Brexit and another referendum.
While stops being triggered above the key 1.2100 handle, investors are now shifting their attention to the upcoming US docket.
GBP/USD levels to consider
As of writing, the pair is gaining 0.72% at 1.2138 and faces initial hurdle at 1.2209 (monthly high Aug.6) seconded by 1.2237 (21-day SMA) and then 1.2470 (55-day SMA). On the flip side, a breakdown of 1.2014 (2019 low Aug.12) would expose 1.1985 (2017 low) and finally 1.1904 (October 2016 ‘flash crash’).
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