GBP/USD rises back towards 1.3157 on upbeat UK data

The GBP bulls received fresh boost from better-than expected UK CBI retail sales data, now pushing the GBP/USD pair back towards the multi-month tops of 1.3157.

GBP/USD: Focus shifts to US durable goods data

After a brief phase of consolidation between 1.3125-1.3150 levels over the last hours, the spot finally regained its lost footing on the release of a much stronger-than expected rise in the UK retail sales data, as published by the CBI survey.

United Kingdom CBI Distributive Trades Survey - Realized (MoM) above forecasts (10%) in July: Actual (22%)

However, the renewed uptick could lose momentum amid ongoing post-Fed recovery in the US dollar against its main peers and fresh Brexit headlines.  

Markets resort to profit-taking on their USD shorts ahead of the US durable goods orders release, while headlines from the UK Immigration Minister on free movement for EU nationals post-Brexit is seen as a warning by markets, which could be seen slightly negative for the pound.

GBP/USD levels to consider             

“From a technical point of view, the 4 hours chart shows that technical indicators have stabilized well above their mid-lines, losing upward strength, whilst the 20 SMA heads north below the current level, indicating that the risk remains towards the upside. The immediate support comes at 1.3090 with a break below it favoring a downward corrective movement towards 1.3040/50, en route to 1.3010,” Valeria Bednarik, Chief Analyst at FXStreet explains.