GBP/USD comes down to test 1.2700 post-UK retail sales

The Sterling is tumbling further on Thursday, now dragging GBP/USD to the 1.2700 neighbourhood, or session lows.

GBP/USD weaker on data, looks to BoE

Cable lost further momentum today after UK’s retail sales came in below initial estimates for the month of May. In fact, headline sales contracted at a monthly 1.2%, while sales excluding the fuel component also contracted more than expected, 1.6% inter-month.

GBP thus stays under further pressure in light of the upcoming BoE meeting and the Mansion House event, with Governor M.Carney and Chancellor P.Hammond due to speak.

In the meantime, spot is down for the second session in a row in a context of renewed bid tone around the greenback following yesterday’s rate hike by the Federal Reserve.

GBP/USD levels to consider

As of writing the pair is losing 0.25% at 1.2714 and a break below 1.2632 (low Jun.9) would open the door to 1.2626 (100-day sma) and finally 1.2566 (200-day sma). On the other hand, the next resistance aligns at 1.2796 (55-day sma) followed by 1.2818 (high Jun.14) and then 1.2873 (20-day sma).