GBP/USD Price Dips to 1.36 amid Haven Flows, ahead of UK Retail Sales

• GBP/USD continues to fall towards 1.3600 on Friday.
• US Dollar keeps on gaining as the risk-off sentiment prevails and Fed tapering talks provide support.
• The market is eying on the UK retail sales data to further gauge risk sentiment.
• Technically, an upside correction may be seen around the 1.3570 – 1.3600 area.

The GBP/USD price fell during Friday’s Asian trading session. However, the pair is trading in a narrow range following its fall from 1.3760 in the last New York session.

GBP/USD is down 0.07% on the day at 1.3621 at the time of writing.

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The US Dollar Index (DXY) is currently trading at 93.55, which compares the dollar to its six major peers. The Fed indicated at its latest meeting that officials expect to reduce stimulus by the end of the year, provided that labor market conditions improve significantly.

The spread of the Delta variant and its impact on the global economic recovery made investors rush for safe-haven assets.

As a result of risk aversion, the pound sterling weakened against the dollar.

According to Gfk, UK consumer confidence fell from -7 in the previous month to -8 in August, marking the highest level since COVID-19 emerged.

To gauge the market’s mood, investors are taking a look at the retail sales data for the pound sterling.

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GBP/USD price technical analysis: Aiming to test YTD lows

The GBP/USD market-fresh monthly lows at 1.3617 while the YTD lows of 1.3570 are not too far. If the bearish trend persists, we can see a retest of the YTD lows followed by 1.3550 and 1.3500 support areas.

The pair has covered around 30% of the average daily range, which indicates that we may see normal volatility on the day. Although the pair is vulnerable to fall below the 1.3600 area, the probability of consolidating losses and making an upside correction prominently exist after a fall from 1.4000.

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