GBP/USD keeps 1.2300 post-data

The British Pound lost some momentum vs. the buck on Friday, with GBP/USD keeping the trade in the 1.2330 area for the time being.

GBP/USD firm post-data

The pair reverted the daily upside after UK’s Retail Sales surprised markets to the downside, contracting at a monthly 1.9% while Sales excluding the Fuel component also dropped 2.0% inter-month.

The data contrast with higher-than-expected inflation figures during the last month of 2016 and auspicious labour market results seen on Tuesday and Wednesday, respectively.

In spite of the disappointing results, GBP remains well underpinned by the persistent selling mood around the buck, broad-based solid UK fundamentals and alleviated concerns over a ‘hard Brexit’.

In the US data space, Trump’s inauguration will grab all the attention later in the day, with Philly Fed Patrick Harker (voter, hawkish) and San Francisco Fed John Williams (2018 voter, centrist) also due to speak.

GBP/USD levels to consider

As of writing the pair is retreating 0.28% at 1.2311 facing the next hurdle at 1.2415 (high Jan.17) ahead of 1.2437 (high Jan.6) and finally 1.2537 (100-day sma). On the downside, a break below 1.2250 (low Jan.18) would aim for 1.2014 (low Jan.17) and finally 1.1979 (low Jan.16).