GBP/USD: Bulls cheer strong UK retail trade, 1.3200 eyed?

The GBP/USD pair is extending upbeat UK retail sales data inspired gains in the European session, now aiming for a break above 1.32 handle ahead of the US economic releases.

GBP/USD storms through 20-DMA and beyond

Currently, GBP/USD rallies +0.95% to 1.3165, having posted fresh nine-day highs at 1.3172 last hour. The cable witnessed more-than one big figure rally after the pound was lifted across the board on stronger-than expected UK retail volume data.

Retail sales rose 1.4% m/m in July from a 0.9% fall the previous month, which was significantly better than the flat reading expected.

Moreover, a dramatic turnaround in the risk conditions after the European stocks turned positive also boosted the demand for higher-yielding currencies such as the GBP.

Next on tap for the major remains the US unemployment claims and regional manufacturing index due for release in the NA session.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3220 (50-DMA), above which 1.3250 (psychological levels) would be tested. On the flip side, support is seen at 1.3096 (20-DMA) below that at 1.3036 (daily pivot).