GBP/USD extends 4-day bearish streak ahead of UK retail sales

The bearish grip on the GBP loosened a bit in the mid-Asian trades, prompting a tepid-recovery in GBP/USD from ahead of 1.24 handle.

GBP/USD holds well above 1.2400

The major is seen recovering losses and now looks to regain 1.2450 barrier, amid ongoing weakness in the global yields, particularly treasury yields, which keeps the demand for alternative higher yielding currency GBP intact. Meanwhile, the cable is last seen exchanging hands at 1.2422, recovering from 1.2412 session lows, still down 0.17% on the day.

The cable remains on a declining path so far this week, largely on the back of lackluster UK fundamentals, with the UK CPI and jobs data leaving markets unimpressed. Focus now shifts towards the UK retail sales data due later in the European session, with markets expecting a solid growth in the retail volume.

While the US docket offers the much awaited US CPI, housing and Philly Fed manufacturing gauge ahead of Fed Chair Yellen’s testimony.

GBP/USD Levels to consider            

At 1.2420, the pair finds immediate resistances placed at 1.2500 (zero figure), 1.2531 (Nov 15 high) and 1.2550 (psychological levels). While supports are lined up at 1.2400 (round figure) and 1.2389 (20-DMA) and below that at 1.2349 (Nov 9 low).

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