GBP/USD rallies further beyond 1.3200 handle, fresh 2-month tops

   •  Persistent USD selling bias triggers the initial leg of up-move.
   •  Upbeat UK retail sales data provides an additional boost.
   •  Positive Brexit comments remain supportive of the momentum,

The GBP/USD pair continued scaling higher through the mid-European session and climbed to fresh two-month tops, around the 1.3235 region in the last hour.

After yesterday's volatile moves, led by hotter-than-expected UK inflation figures and bearish Brexit headlines, the pair regained positive traction on Thursday and was being supported by persistent US Dollar selling bias. 

The positive momentum got an additional boost following a surprisingly positive UK monthly retail sales data, coming in to show 0.3% m/m growth in August as against a contraction of 0.2% anticipated. 

Adding to this, optimistic Brexit comments, coming out of the informal EU leaders' meeting in Salzburg remained supportive of the pair's strong move to the highest level since July 17.

With today's goodish rally, the pair finally seems to have confirmed a bullish break through 100-day SMA and hence, a follow-through momentum, led by some fresh technical buying, now looks a distinct possibility.

In the meantime, today's second-tier US economic releases - Philly Fed Manufacturing Index, usual initial weekly jobless claims and existing home sales data, might also be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Immediate resistance is now pegged near the 1.3270 level, above which the seems all set to reclaim the 1.3300 handle. On the flip side, the 1.3200 handle now seems to protect the immediate downside and any subsequent slide might now be limited by 100-DMA - resistance turned support, near the 1.3165-60 region.