GBP/USD is trading below the round number of 1.3000 in reaction to the upbeat US retail sales. Headline sales rose by 1.6% in March, core sales by 1.2%, and the control group by 1%. The increase in the control group, known as the “core of the core” is somewhat more moderate when considering the downward revision in the data for February.
The US Dollar reacted positively, and GBP/USD dropped off 1.3000, hitting a low of 1.2992. The fall also sent cable below the long-running uptrend support line that accompanies the pair since early March.
Further support is seen at 1.2985 (April low), 1.2960 (March low), 1.2895, and 1.2830. Resistance is at 1.3030 (recent support line, and 1.3070 (recent swing high).
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Earlier, UK retail sales also beat expectations, helping GBP/USD escape the 1.3000 level. However, the market mood weighs on the pair. The safe-haven US Dollar rose after German Manufacturing PMI missed expectations, causing concerns about global growth.
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