The GBP/USD pair came under some fresh selling pressure during mid-European session and slipped further below the 1.2800 handle.
The pair reversed majority of previous session gains and is now on the brink of breaking below the three-day old trading range support near the 1.2775-70 region. The pair is being weighed down by today's dismal UK monthly retail sales figures, which clearly seems to suggests that rising inflationary pressure is hurting consumer spending and might eventually result into real economic slowdown.
Meanwhile, a modest pick-up in the greenback buying interest, with the key US Dollar Index inching closer to the key 100.00 psychological mark, further collaborated to the offered tone surrounding the major.
Nevertheless, the pair is still set to post its second consecutive weekly gains and could also be headed for its highest weekly close since late September 2016, against the backdrop of the UK PM Theresa May's surprise announcement to call for an early election.
Next on tap would be the US economic docket, featuring the release of PMI reports and existing home sales data. The pair might also be influence by external BOE MPC Member Michael Saunders and Minneapolis Fed President Neel Kashkari's possible comments on the respective central bank's monetary policy stance.
Technical levels to watch
On a sustained weakness below 1.2775-70 immediate support, the pair is likely to accelerate the slide towards 1.2750 intermediate support before eventually dropping back to the 1.2700 handle.
On the upside, momentum back above the 1.2800 handle might continue to face resistance near 1.2835-40 region, which is closely followed by 1.2850-60 important hurdle. A clear break above this important hurdle is likely to lift the pair back towards 1.2900 round figure mark.