GBP/USD remains capped below 1.2500 ahead of UK retail sales

Having a caught a fresh bids in early Asia, the GBP/USD pair extends its upside consolidation phase into Europe, with the bulls awaiting a rebound in the UK retail sales figures for the next push higher. The UK retail sales data is expected to rise to 0.4% m/m versus -0.3% previous and 2.6% y/y versus 1.5% in February.

Risk aversion: Invisible but it isn’t dead - Westpac

The recovery in cable from a dip to near 1.2470 region lacks follow-through, as yesterday’s incident of a terrorist attack on the UK parliament continue to linger on the investors mind. Also, increased nervousness ahead of the US House vote on the Trumpcare bill keeps a lid on the higher-yielding currency GBP.

GBP/USD Levels to consider            

Karen Jones, Analyst at Commerzbank explains, “GBP/USD near term outlook is neutral to positive: Sterling is approaching the 1.2579/81 February 9th high, and the 78.6% retracement and we would allow for this to hold the initial test. It remains the break up point to the 1.2650 top of the channel. The market is immediately bid above the 20 and 55 day ma at 1.2416/1.2387.”