GBP/USD jumps to 1.2700 neighborhood on stellar UK retail sales data, BoE next

   “¢   The USD struggles to build on the post-FOMC rebound and helps regain traction.
   “¢   UK retail sales growth, at 1.4%m/m surpassed even the most optimistic estimates.

The GBP/USD pair built on its goodish intraday rally and spiked back closer to the 1.2700 handle on upbeat UK macro data.

Despite not so dovish FOMC outlook as was anticipated by the market, the US Dollar struggled to build on the overnight rebound and assisted the pair to regain positive traction on Thursday.

The pair kept scaling higher through the early European session and got an additional boost from upbeat UK monthly retail sales data, recording a strong 1.4% m/m growth in November.

The post-data spike, however, turned out to be short-lived as investors now look forward to the latest  BoE  policy decision for some fresh impetus. The UK central bank is expected to maintain status-quo amid the political deadlock over the UK efforts to exit the European Union and might turn out to be a  non-event for the market.

Technical levels to watch