GBP/USD: Bulls testing 10-DMA barrier ahead of UK data

A renewed relief-rally in the GBP/USD pair appears to have stalled at 10-DMA resistance, with the rate now consolidating at higher levels.

GBP/USD awaits UK retail sales for fresh impetus

The bulls take a breather after the latest upmove as investors shifts on the side-lines ahead of the highly influential UK retail sales data, which is expected to show a substantial increase  in the consumers’ spending in the reported month.

The cable caught a fresh bid-wave and jumped to session highs of 1.2473 on the back of a renewed risk-on wave, triggered by positive open on the European markets and pick-up in commodities.

While extension of the losses in the US dollar against its main competitors, also aided the recovery in the GBP/USD pair. The spot is last seen exchanging hands near 1.2469, up +0.21% on the day.

Focus also remains on the US CPI, housing, Philly Fed manufacturing gauge and Fed Chair Yellen’s testimony due on the cards in the NA session.

 GBP/USD Levels to consider                       

At 1.2420, the pair finds immediate resistances placed at 1.2500 (zero figure), 1.2531 (Nov 15 high) and 1.2550 (psychological levels). While supports are lined up at 1.2400 (round figure) and 1.2389 (20-DMA) and below that at 1.2349 (Nov 9 low).

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