GBP/USD: Bulls gathering pace for a test of 1.3300?

• USD still weaker 
• UK retailers cut jobs in Q3     
• UK CBI realized sales in focus

Having refreshed fresh weekly tops at 1.3279 last hour, the GBP/USD pair entered in a consolidative phase, as the bulls take a breather for the next push higher amid persistent broad USD weakness.

GBP/USD supported well above 50-DMA at 1.3252

The spot remains better bid so far this Thursday, as the US dollar extends its weakness in tandem with Treasury yields, as risk-off sentiment persists amid mixed Asian equities and subdued oil prices. Markets tend to stay away from risk assets such as the yields, equities etc. in times of risk-averse market condition.

The greenback remains under pressure across its main competitors, following the sell-off on the Wall Street, fuelled by poor earnings, while the latest Politico headlines of Trump not ready to announce a Fed Chair this week, also added to the USD weakness.

Meanwhile, the pound derived support from no negative news reported on the Brexit deal yesterday, against the backdrop of stronger Q3 GDP figures released, which surprised markets to the upside and refueled expectations of a Nov BOE rate hike.

The UK Q3 2017 prelim GDP unexpectedly rises to 0.4%

Focus now shifts towards the UK CBI realized sales data, especially after the latest report citing that the UK retailers cut jobs in Q3 at the fastest pace since 2008. Also, of note will the US jobless claims, goods trade balance and pending home sales data, while the ECB policy decision could also have a major “rub-off” effect on the GBP.

GBP/USD Technical View

Valeria Bednarik, Chief Analyst at FXStreet, writes: “…the technical picture is bullish short-term, as in the 4 hours chart technical indicators re-entered positive territory, lacking directional strength at the time being, whilst the price is above its moving averages that anyway remain flat.”

Key Levels: Support levels: 1.3220 1.3180 1.3145

                     Resistance levels: 1.3265 1.3300 1.3335