GBP/USD retreats from tops near 1.3450

  • Cable clinches fresh multi-day peaks near 1.3450.
  • UK’s Retail Sales came in on the strong side in May.
  • Softer greenback lends support to today’s upside.

The Sterling is trading on the right foot for yet another session, lifting GBP/USD to test the area of fresh 5-day tops in the vicinity of 1.3450.

GBP/USD bid after data, looks to ECB

Cable is advancing for the second session in a row on Thursday, deriving support from the renewed selling bias around the greenback and auspicious results from the UK calendar.

In fact, the US Dollar Index (DXY) has retraced yesterday’s up tick to the 94.00 handle and is now posting losses for the second straight session following Wednesday’s FOMC meeting and somewhat dovish comments by Chief Powell.

Furthermore, UK’s Retail Sales during May expanded more than expected 1.3% MoM and 3.9% over the last twelve months. In addition, Core sales rose 1.3% inter-month and 4.4% on an annualized basis.

Looking ahead, Cable thus appears poised to target tops seen earlier in the month in the 1.3480 zone amidst a softer buck and some constructive headlines from the Brexit negotiations.

Later in Euroland, the ECB will hold its key meeting and the British Pound could be under some pressure via EUR/GBP.

GBP/USD levels to consider

As of writing, the pair is gaining 0.35% at 1.3423 facing the next resistance at 1.3446 (high Jun.14) seconded by 3474 (high Jun.7) and then 1.3605 (200-day sma). On the other hand, a break below 1.3310 (low Jun.13) would expose 1.3205 (2018 low May 23) and finally 1.3039 (low Nov.3 2017).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.