GBP/USD drops to lows post-data

The British pound is now losing the grip vs. its American peer, dragging GBP/USD to fresh daily lows in the 1.2270/65 band.

GBP/USD weaker on poor UK data

The pair is retreating for the second session in a row so far today, losing further ground after UK’s retail sales have come in short of expectations for the month of September.

In fact, headline sales have come in flat inter-month vs. a forecasted gain of 0.4%, taking the annualized expansion to 4.1%. Sales excluding the Fuel component have also come in flat, advancing 4.0% over the last twelve months.

Next of relevance for spot will be the ECB rate decision followed by US releases: Initial Claims, the Philly Fed manufacturing survey, Existing Home Sales and the speech by NY Fed W.Dudley (permanent voter, neutral).

GBP/USD levels to consider

As of writing the pair is losing 0.18% at 1.2268 facing the immediate support at 1.2086 (low Oct.11) ahead of 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a breakout of 1.2327 (high Oct.18) would aim for 1.2377 (high Oct.11) and finally 1.2574 (20-day sma).