“¢ UK monthly retail sales data surpass even the most optimistic estimates.
“¢ A follow-through USD profit-taking slide remains supportive of the up-move.
Having retested sub-1.2700 level in the past hour, the GBP/USD pair regained positive traction and jumped back to the top end of its daily trading range post-UK retail sales data.
The pair caught some fresh bids and was now seen building on overnight modest rebound from over 13-month lows after the latest UK monthly retail sales surpassed even the most optimistic estimates, coming in to show a strong m/m growth of 0.7% as compared to 0.2% anticipated.
Adding to this, total retail sales rose 3.5% over the year (3.0% expected) and core retail sales, stripping the basket off motor fuel sales, also recorded a strong growth of 0.9% m/m, rising 3.7% y/y.
The data provided a minor lift to the British Pound, albeit lacked any strong follow-through amid growing prospects for a no-deal Brexit, albeit a weaker tone surrounding the US Dollar remained supportive of the modest up-move.
Technical levels to watch
Any subsequent up-move is likely to confront fresh supply near the 1.2765-70 region, above which the pair is likely to aim towards reclaiming the 1.2800 handle before eventually aiming to retest weekly tops, around the 1.2825-30 region.
On the flip side, weakness back below the 1.2700 handle would expose the pair head back towards testing 1.2660 area (near 14-month lows set in the previous session) en-route the 1.2600 round figure mark.
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