- GBP/USD rebounds from Friday’s lows near 1.2300.
- The dollar calms down again after the release of US data.
- British retail sales surprised with growth in April.
The British pound regains balance and motivates GBP/USD to regain lost ground and advance near the 1.2400 mark at the end of the week.
GBP/USD appears to be supported near 1.2300
After an earlier rally towards the 1.2400 mark, GBP/USD is now coming under some selling pressure on the back of a rebound in the dollar, which was particularly exacerbated by higher US inflation data tracked PC.
Indeed, further resistance to key US fundamentals is motivating renewed buying interest in the dollar, which has also prompted the USD index (DXY) to pare initial losses.
Meanwhile, better than expected in the UK Retail sales for the month of April it lent initial legs to the pound and accompanied a move higher in Cable, all in line with growing speculation of further tightening by the BoE at the June 22 event.
GBP/USD levels to consider
At the time of writing, the pair is gaining 0.19% at 1.2345 and a break above 1.2668 (2023 high on May 8) would open the door to 1.2864 (200-week SMA) and then 1.3000 (psychological level). On the other hand, further support appears at 1.2308 (monthly low of May 25), followed by 1.2274 (monthly low of April 3) and finally 1.2010 (weekly low of March 15).