GBP/USD breaking lower towards NY low, UK retail sales eyed

The recovery in GBP/USD faltered just shy of 1.23 handle in early Asia, now sending the rate back in the red in a bid to test NY lows struck at 1.2254 levels.

GBP/USD awaits UK retail sales

A fresh bout of buyer interest gripped the US dollar last hour after markets cheer a Clinton win, thus, sending the GBP/USD pair sharply lower.

The major faced rejection near 1.23 handle and drifted lower, despite persisting risk-on trades, as markets take profits off the table after the recent strength, as we head towards the UK retail sales release due later this session.

According to the latest British Retail Consortium/KPMG data, retail sales rebounded by 1.3% in Sept compared with a year ago. Hence, markets are expected today’s UK retail sales to return to growth in the reported month versus a -0.2% m/m figure seen in August.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2297 (daily high), 1.2334 (Oct 19 high) and 1.2377 (Oct 11 high). While supports are lined up at 1.2243/35 (10 & 5-DMA) and 1.2209 (daily S2) and below that at 1.2173 (Oct 18 low).