GBP/USD fades a spike to 1.4200, BOE in spotlight

The GBP/USD pair faded upbeat UK retail sales inspired recovery just shy of 1.4200, now sending the rate sharply lower towards the mid-point of 1.41 handle

GBP/USD rejected above 5-DMA at 1.4187

Currently, GBP/USD now drops -0.30% to 1.4166, having tested 1.4150 support once again. The cable keeps the offered tone intact as the bulls remained unimpressed by the extended rebound posed by the UK retail trade volumes last month.

On monthly basis, total retail sales jumped 0.9% in May, against a revised 1.9% rise seen in April, while sales excluding fuel picked up by 1%,as compared to a sharp upward revision to 2% for April.

Further, the bears remain in control in response to increased cautiousness as we head towards the BOE monetary policy decision and BOE Carney presser, with all ears awaiting some comments around the Brexit issue. The UK votes on EU membership on June 23rd.

Besides, the US CPI also remains closely eyed for fresh cues on the USD price-action, especially after the dovish FOMC-led sell-off.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4187/1.4202 (5-DMA/ 1h 100-SMA), above which 1.4240 (daily R1) would be tested. On the flip side, support is seen at 1.4100/1.4089 (round figure/ multi-week low) below that at 1.4060 (daily S2).