GBP/USD unmoved on UK retail sales, below 1.2900

The sterling is clinging to its daily gains vs. the greenback on Thursday, with GBP/USD trading within a tight range around the 1.2900 handle.

GBP/USD apathetic on UK data

Cable stayed within the daily range around 1.2900 the figure despite the auspicious results from UK’s retail sales. In fact, headline sales rose at a monthly 0.3% (vs. 0.2% exp.) and 0.5% MoM stripping the Fuel sector (vs. 0.2% exp.)

In the meantime, spot is looking to extend the rebound for the second session in a row on Thursday, backed by some positive headlines regarding the Brexit negotiation and some weakness around the buck in the wake of the FOMC minutes.

In the data space, the pair should be wary of the ECB minutes (via EUR/GBP) and the US calendar, which includes initial claims, the Philly Fed manufacturing gauge, industrial production and capacity utilization. In addition, Dallas Fed R.Kaplan (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) are due to speak.

GBP/USD levels to consider

As of writing the pair is gaining 0.05% at 1.2898 facing the next hurdle at 1.2931 (55-day sma) followed by 1.2968 (10-day sma) and finally 1.3007 (38.2% Fibo of 1.2587-1.3266). On the flip side, a break below 1.2843 (low Aug.16) would open the door to 1.2808 (low Jul.12) and finally 1.2747 (76.4% Fibo of 1.2587-1.3266).