GBP/USD bounces off lows, near 1.2430 ahead of data

After bottoming out near 1.2410 in early trade, GBP/USD is now looking to extend the rebound to the 1.2430 region.

GBP/USD attention to UK results

The pair is extending its weekly decline one more session for the time being after being rejected from last week’s tops near 1.2680.

The so far lack of direction in the greenback is somewhat limiting the downside in spot, although it remains under pressure ahead of the release of UK’s Retail Sales and following lower-than-expected inflation figures during October.

Market consensus sees headline sales to have expanded at a monthly 0.4% during last month, reverting September’s flat reading.

Across the Atlantic, inflation figures tracked by the CPI will grab all the attention, seconded by Housing Starts, Building Permits, the Philly Fed index and the weekly report on the labour market.

In addition, Fed speakers including New York Fed W.Dudley (permanent voter, neutral), L.Brainard (permanent voter, dovish), Chicago Fed C.Evans (2017 voter, dovish) and the testimony by Chair J.Yellen on the ‘Economic Outlook’ before the Joint Economic Committee of Congress should keep the focus on the buck.

GBP/USD levels to consider

As of writing the pair is losing 0.06% at 1.2436 a breach of 1.2378 (low Nov.15) would aim for 1.2360 (20-day sma) and finally 1.2349 (low Nov.9). On the upside, the next hurdle lines up at 1.2668 (55-day sma) followed by 1.2675 (high Nov.11) and then 1.2875 (100-day sma).