GBP/USD recovery losses strength, back below 1.3200

The pound is among the worst performers on Thursday affected by UK data. During the last hours, it managed to stabilize across the board but still remains weak amid Brexit concerns. A European Union meeting is taking place in Brussels with Brexit, Spain, and Turkey as the main themes.  

GBP/USD: A short-lived recovery

Cable bottomed earlier after the release of the UK retail sales report. Sales contracted 0.8% in September against forecasts of a 0.1% slide. The data added concerns about consumer confidence. The pound dropped sharply in the market and sent GBP/USD to 1.3128, the lowest in a week. 

UK retail sales drop sharply in Sept, a big miss on expectations

From the lows, the pair started to recover and peaked after the beginning of the US session at 1.3208. It failed to hold on top of 1.3200 and pulled back. At the time of writing it was trading at 1.3170/75 with the bearish momentum increasing. 

Bearish bias persists: watch 1.3150

GBP/USD continues to move with a bearish bias, the area around 1.3150 is being a very strong support and a consolidation below would open the doors for a test of 1.3120 (Oct 12 low); below the next support is seen at 1.3070. 

If cable rises on top of 1.3220 it would break a downtrend line from October highs and would remove the short-term bearish pressure. Before that level, it might face resistance at 1.3185 and 1.3205/10 (US session high).