- GBP/USD finds decent support near 1.2400 mark amid a subdued USD price action.
- Friday’s upbeat UK retail sales figures remained supportive of the modest recovery.
- Fresh coronavirus jitters might keep a lid on any strong positive move for the major.
The GBP/USD pair held on to its modest recovery gains, jut below mid-1.2400s and had a rather muted reaction to the latest UK macro data.
The pair managed to find decent support near the 1.2400 round-figure mark and staged a goodish intraday recovery from three-week lows. A modest uptick in the Asian stock markets undermined the US dollar’s relative safe-haven status. This, in turn, was seen as one of the key factors that assisted the GBP/USD pair to regain some positive traction on the last trading day of the week.
The British pound was further supported by Friday’s upbeat UK monthly retail sales data, which recorded a strong growth of 12% in May. The reading surpassed consensus estimates by a big margin and was accompanied by stronger-than-expected core figures. The data remained supportive of the bid tone surrounding the GBP/USD pair, which has now recovered a part of the post-BoE steep losses recorded in the previous session.
It will now be interesting to see if the pair is able to capitalize on recovery move or meets with some fresh supply at higher levels amid some renewed coronavirus jitters. Investors remain concerned about a rise in new coronavirus cases, which coupled with geopolitical tensions in Asian now seemed to have overshadowed the recent optimism about a sharp V-shaped recovery.
Technical levels to watch
Share
