GBP/USD spikes to fresh session tops on upbeat UK retail sales, BOE next

   •  UK monthly retail sales post a strong 1.2% m-o-m growth.
   •  Upbeat data helps offset a modest USD rebound.
   •  Focus remains on BOE decision, due later today.

Having posted a session low near the 1.3365 region, the GBP/USD pair regained traction and spiked to mid-1.3400s post-UK retail sales.

The pair caught some fresh bids after data released from the UK showed monthly retail sales registered a strong 1.2% m-o-m growth during November, much-better-than 0.4% expected and 0.3% rise recorded in the previous month.

The upbeat data helped offset a modest US Dollar rebound, supported by a goodish pickup in the US Treasury bond yields, and provided a minor boost to the major.

Barring the initial reaction to the data, the pair seemed lacking any strong follow-through momentum as investors look forward to the BOE monetary policy decision for fresh directional impetus.

Technical levels to watch

Momentum beyond 1.3470-75 area is likely to lift the pair beyond the key 1.35 psychological mark towards its next major hurdle near the 1.3530 region.

On the flip side, weakness back below the 1.3400-1.3390 region, leading to a subsequent breakthrough session lows support near the 1.3365 area, would turn the pair vulnerable to retest the 1.3300 support.