GBP/USD extends the drop below 1.2300

The selling pressure around the Sterling is now picking up pace, prompting GBP/USD to retreat to daily lows in the proximity of 1.2280.

GBP/USD weaker post-UK data, eyes on Trump

The pair shed nearly a cent from overnight tops in the proximity of 1.2370 to the current area of 1.2280, following a pick up in the demand for the US dollar and poor results from UK Retail Sales during December.

In fact, Retail Sales have sharply reverted the November’s advance during the last month of the year, with headline sales contracting 1.9% MoM and sales excluding the Fuel component dropping 2.0% MoM.

Later in the session, all the attention will be on the speech by the US President Donald Trump at his presidential inauguration, seconded by speeches by Philly Fed Patrick Harker (voter, hawkish) and San Francisco Fed John Williams (2018 voter, centrist).

GBP/USD levels to consider

As of writing the pair is retreating 0.49% at 1.2284 and a break below 1.2250 (low Jan.18) would aim for 1.2014 (low Jan.17) and finally 1.1979 (low Jan.16). On the other hand, the immediate hurdle lines up at 1.2372 (high Jan.20) followed by 1.2415 (high Jan.17) and then 1.2437 (high Jan.6).