GBP/USD leaps to 1.3240 post-UK data

GBP/USD is now alternating gains with losses around the 1.3240 region following the positive results from UK’s Retail Sales during August.

GBP/USD bid on UK data

Spot rebounded from the 1.3200 neighbourhood on Wednesday after UK’s Retail Sales have surprised markets to the upside during last month, contracting 0.2% vs. expectations of a 0.4% drop. Core sales – excluding Fuel – have followed suit, contracting at a monthly 0.3% vs. a forecasted 0.8% drop.

Later in the session, the Bank of England is expected to leave its monetary stance unchanged at today’s meeting, with the refi rate at 0.25% and the Asset Purchase facility at £435 billion.

GBP/USD levels to consider

As of writing the pair is retreating 0.02% at 1.3237 with the next support at 1.3133 (support line off July’s top) followed by 1.3056 (low Aug.29) and finally 1.2863 (low Aug.15). On the flip side, a breakout of 1.3447 (high Sep.6) would aim for1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move).