GBP/USD fades a spike to 1.2570, UK retail sales, BOE eyed

The GBP/USD pair extends its range-trade into Europe, now reversing briefly from session tops scored at 1.2569, with the bears back in play and stalling the recovery from two-week lows of 1.2514.

The major remains under pressure amid persistent demand for the greenback across the board, following Wednesday’s FOMC hawkishness resulting in an extensive rally in the US treasury yields.

Moreover, negative opening on the London stocks also weighed on sentiment around the pound, as markets turn cautious ahead of the UK retail sales data and BOE monetary policy decision.

UK: Downside risks to retail sales report – TDS

BoE to keep its monetary policy unchanged – Danske Bank

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2604/09 (daily pivot/ 5-DMA), 1.2624 (10-DMA) and 1.2690 (100-DMA). While supports are seen at 1.2514 (2-week low) and 1.2487 (daily S1) and below that at 1.2446 (50-DMA).