GBP/USD drifts into negative territory ahead of UK retail sales

The GBP/USD pair ran through some offers at higher level and reversed daily gains to session peak near 1.2370 region.

Currently trading around 1.2330 region, testing session lows, the greenback reversed early weakness, with the key US Dollar Index moving back to 101.0 mark, seems to be the only factor contributing to some selling pressure around the major. 

Earlier on Friday, generally bearish bias surrounding the buck, in absence of any fresh hawkish signals from the Fed Chair Janet Yellen, helped the pair to build on Thursday's up-move. 

Moving forward, UK retail sales might provide some fresh trading impetus during European trading session. However, investors’ attention would remain on Trump's inauguration speech, later during the day, which would provide clarity over his fiscal policies and help investors determine the greenback's next leg of directional move. 

Technical levels to watch

A follow through selling pressure below 1.2300 handle is likely to drag the pair back towards 1.2250 support below which the pair is likely to turn vulnerable to head back towards 1.2200 round figure mark. On the upside, momentum above 1.2350 level, leading to a subsequent strength above session peak resistance near 1.2370 area, now seems to lift the pair back beyond 1.2400 handle towards retesting 50-day SMA strong hurdle near 1.2415-20 region.