• Upbeat UK retail sales data-led modest uptick turned out to be short-lived.
• Resurfacing global growth concerns benefit USD’s relative safe-haven status.
• Traders now eye US monthly retail sales figures for some short-term impetus.
The GBP/USD pair failed to capitalize on upbeat UK retail sales data-led attempted bounce and has now moved on the verge of breaking below the key 1.30 psychological mark.
Having repeatedly failed to find acceptance above the 1.3100 handle, the pair remained under some selling pressure for the third consecutive session and dropped to near two-week lows amid a goodish pickup in the US Dollar demand.
Today’s sluggish German/overall Euro-zone PMIs revived fears about a global economic slowdown and spread jitters across financial markets, which eventually benefitted the greenback’s relative safe-haven status against its British counterpart.
Apart from resurgent USD demand, persistent Brexit uncertainty further collaborated to the ongoing slide, though it remains to be seen if the current fall is categorized as a fresh technical breakdown as Brexit headlines could easily swing it either direction.
It is worth reporting that the UK lawmakers will return from their Easter break next week and any fresh Brexit developments will play an important role in driving the near-term sentiment surrounding the British Pound and help determine the near-term direction.
In the meantime, today’s US economic docket – highlighting the release of US monthly retail sales, might be looked upon to grab some short-term trading opportunities amid relatively lighter trading conditions ahead of a long Easter weekend.
Technical levels to watch
Sustained weakness below the 1.30 handle is likely to accelerate the fall towards challenging the very important 200-day SMA, currently near the 1.2970 region, which if broken should pave the way for a further near-term depreciating move. On the flip side, the 1.3050-55 region now seems to act as an immediate resistance, above which the pair is likely to make an attempt towards reclaiming the 1.3100 round figure mark.