GBP/USD retreats to 1.2990, still holds to gains

GBP/USD moved off multi-month highs and trimmed gains during the American session. The pair peaked earlier today at 1.3046, the highest level since September 29 and currently is hovering around 1.3005/10, 40 pips above yesterday’s closing price. 

The pair is holding so far above 1.3000 but that area is being challenged at the moment. From a technical perspective a close above 1.3000 could signal more gains ahead. 

The pound still is, among majors, the best performer on Thursday supported by UK economic data. Earlier today, the retail sales report showed that during April, sales rose beating market expectations significantly. Volume increased 2.3% in April, against a 1% gain of market consensus. 

Then, US economic data also showed numbers better-than-expectation and helped the US dollar. Initial jobless claims dropped to 232K vs 240K while the Philly Fed rose from 22.0 to 38.8.

UK retail sales rebound way beyond expectations in April

US: Weekly initial claims was 232,000, a decrease of 4,000 from the previous week

US: The Conference Board Leading Economic Index increased to 126.9 in April

Technical level 

To the upside, resistance levels might now be seen at 1.3015, 1.3045/50 (daily high) and 1.3100 (psychological). On the downside, support could be located at 1.2985/90 (American session low), 1.2935 (daily low) and 1.2905 (May 17 low). 

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