“¢ Disappointing UK monthly retail sales data prompt some long-unwinding trade.
“¢ Subdued USD price action seemed to help limit any deeper slide, at least for now.
The GBP/USD pair remained under some selling pressure through the mid-European session and is currently placed at the lower end of its daily trading range, around the 1.2930-40 region.
After yesterday’s strong upsurge to the key 1.30 psychological mark, the highest since mid-November, the pair lost some ground and was further weighed down by the disappointing release of UK monthly retail sales data.
With plenty of Brexit uncertainties still on the table, the dismal UK macro data prompted traders to lighten their bets, especially after a strong upsurge of over 300-pips from Tuesday’s swing lows near the 1.2670-65 region.
The downside, however, remained cushioned expectations for an extension of Article 50, despite repeated denials by the UK government, and the market stance of a diminishing hard Brexit risk.
This coupled with a subdued US Dollar price action and absent relevant market moving economic releases from the US might further collaborate towards limiting any meaningful downfall, at least for the time being.
Technical levels to watch
Any subsequent slide is likely to find strong support near 100-day SMA, around the 1.2900 region, below which a fresh bout of technical selling might drag the pair further towards the 1.2865-55 horizontal support.
On the flip side, the 1.2990-1.3000 region might continue to act as an immediate hurdle, which if cleared should continue boosting the pair further towards 1.3070 intermediate resistance en-route the 1.3100 handle.
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