GBP/USD off highs, heads towards 5-DMA ahead of UK data

The bulls are seen defending moderate gains, with the GBP/USD pair having retreated from daily tops, despite persistent risk-on sentiment and a broadly subdued US dollar.

GBP/USD supported near 1.3225 region

Currently, GBP/USD now rises +0.23% to 1.3235, reversing a spike to session highs reached at 1.3276 in early trades. The cable gave back almost half the gains and now consolidates around 1.3225 region, awaiting fresh impetus from the upcoming UK retail sales data for next direction.

The pound remains well bid against its US counterpart as it continues to ride higher on the upbeat UK employment data-led wave. The UK’s official jobless rate dropped to 4.9% versus 5.0% last, with the hiring process unaffected by the Brexit concerns. The number of people claiming jobless benefits ticked lower from 12,200 to 400.

Meanwhile, the moves in the major on the retail sales release is expected to be limited as the main risk event for today remains the ECB decision, which is expected to have significant “rub-off” effect on the GBP.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3271/76 (daily R1 and high), above which 1.3300 (round number) would be tested. On the flip side, support is seen at 1.3209 (5-DMA) below that at 1.3165 (20-DMA).