GBP/USD eases to 1.2960 ahead of UK Retail Sales

The British Pound is following south the rest of the risk-associated peers, with GBP/USD retreating from recent highs and returning to the 1.2960 region.

GBP/USD upside capped at 1.2990

Cable once again failed to test the psychological 1.3000 handle earlier in the session, sparking the current leg lower amidst some recovery in the greenback.

In fact, despite the political turmoil in the US, the buck managed to regain some buying interest after tumbling to fresh multi-month lows around 97.30 when tracked by the US Dollar Index (DXY).

Later in the European session, UK’s Retail Sales are due, with consensus expecting headline sales to have expanded at a monthly 1.0%, reverting the previous contraction.

In the US docket, the usual weekly report on the labour market is due followed by the key Philly Fed Manufacturing index and the speech by Cleveland Fed L.Mester (2018 voter, hawkish).

GBP/USD levels to consider

As of writing the pair is losing 0.03% at 1.2965 and a surpass of 1.2994 (2017 high May 17) would pave the way for a test of 1.3000 (psychological handle) and finally 1.3125 (high Sep.22 2016). On the flip side, the immediate support aligns at 1.2904 (20-day sma) followed by 1.2842 (low May 12) and then 1.2829 (low May 4).