GBP/USD comes down to test 1.3200 ahead of UK retail sales

The GBP/USD pair failed to sustain at higher levels again and trimmed gains over the last hour, as markets await the UK retail sales release for the next direction.

GBP/USD sold-off near 1.3225 levels

The spot is seen defending minor bids in early Europe, as investors remain wary over the outcome of the UK retail sales release. Retail sales expected to drop to 0.1% m/m in September, while on yearly basis, the growth is seen slowing to 2.1% from 2.4%.  

Moreover, increased cautiousness ahead of the UK PM Theresa May’s speech on the first day of the Brexit/ EU Summit starting later today, also adds to the weight on the pound. Meanwhile, stalled selling the US dollar across the board further collaborates to the renewed weakness seen in Cable.

All eyes now remain on the UK retail sales report for fresh trading impetus amid a data-light EUR calendar today.

GBP/USD Technical View

Jim Langlands at FX Charts noted: “Technically, the momentum indicators are generally mixed/flat so a neutral stance is required today and I prefer to stand aside, although the hourlies do point to the chance of another topside squeeze, where a break of 1.3210 is needed to allow the chance of a move towards 1.3250, possibly to 1.3280.”