GBP/USD comes down to 1.41 on UK’s retail sales
- UK’s retail sales expanded 0.1% MoM.
- Cable dropped to 1.4100 on weak data.
- US consumer sentiment next of relevance.
The Sterling gave away part of its initial gains today following the release of January’s retail sales in the UK, with GBP/USD briefly visiting 1.4100 in the wake of the publication.
GBP/USD stays bid post-data
Cable lost some upside momentum after UK’s headline retail sales expanded at a monthly 0.1% during last month, less than initially forecasted. Core retail sales came in below expectations as well, advancing 0.1% on a monthly basis.
In the meantime, the pair’s upside remains bolstered by the broad-based selling sentiment surrounding the buck, although gains appear to have faltered near earlier tops around 1.4150. This area of resistance stays reinforced by the short-term resistance line, today at 1.4165.
Looking ahead, January’s housing starts, building permits and the advanced consumer sentiment gauge are all due later in the US calendar.
GBP/USD levels to consider
As of writing, the pair is gaining 0.07% at 1.4107 facing the next hurdle at 1.4145 (high Feb.16) seconded by 1.4165 (near term resistance line) and finally 1.4280 (high Feb.2). On the downside, a breach of 1.4032 (21-day sma) would aim for 1.3948 (10-day sma) and then 1.3765 (low Feb.9).