GBP/USD stuck in 15-pips tight range ahead of UK retail sales

The GBP/USD pair extends its side-trend below 1.3050 levels for the second-day today, as markets remain in a wait-and-see mode ahead of the key UK retail sales data, which will be reported at 0830GMT

GBP/USD: 1.3100 or 1.2950 on UK retail sales?

The spot continues to move back and forth in a narrow range, fluctuating between gains and losses, as markets refrain from placing any directional bets on Cable ahead of the UK data and another round of Brexit talks.

Brexit minister David Davis will visit Brussels today and meet the EU Chief Brexit negotiator Barnier. They will assess the past four days of talks and outline what progress has been made so far. 

Moreover, stalled recovery in the US dollar from multi-month lows against its main competitors, helped limit the downside in the GBP/USD pair. The USD bulls tread water, as they digest the latest headlines on the US fiscal budget plan.

Apart from the UK retail sales release, the major could also get influenced by the cross-driven moves, especially on the ECB policy decision, which could have a significant impact on the EUR/GBP cross.

GBP/USD levels to consider             

Haresh Menghani, Analyst at FXStreet noted, “A convincing break below 1.30 handle now seems to accelerate the fall towards 1.2930-20 region, comprising of 20-day SMA and 38.2% Fibonacci retracement level, below which the pair is likely to extend the corrective move even below the 1.2900 handle towards testing 50% Fibonacci retracement level support near mid-1.2800s. Alternatively, a sustained move back above 1.3050-60 region should assist the pair back towards reclaiming the 1.3100 handle, which if conquered should pave way for resumption of the prior appreciating move.”