GBP/USD clinched 1.30 post-UK retail sales

The Sterling trimmed part of its initial losses vs. the greenback following the upbeat results from UK’s retail sales, taking GBP/USD back to levels above the 1.3000 handle.

GBP/USD bounces off lows on upbeat data

Cable met some fresh buyers after UK’s retail sales expanded more than expected in June 0.6% MoM vs. a forecasted gain of 0.4% and up from May’s 1.1% monthly contraction.

Further data saw sales stripping the fuel component also surpassed expectations, up 0.9% inter-month, reverting May’s 1.5% drop.

In the meantime, spot is recovering part of the ground lost to the proximity of the 1.2970 region following comments from UK’s Trade Secretary Liam Fox. The pair’s outlook, however, is seen unchanged while above the short term support line, today at 1.2900.

GBP/USD levels to consider

As of writing the pair is losing 0.29% at 1.2999 facing the next support at 1.2973 (low Jul.20) followed by 1.2967 (10-day sma) and finally 1.2920 (21-day sma). On the other hand, a breakout of 1.3053 (high Jul.19) would open the door to 1.3115 (high Jul.14) and then 1.3127 (2017 high Jul.18).