GBP/USD retreats from highs, back below 1.2500

After climbing to fresh highs near 1.2520, GBP/USD has now eased some ground and is now gyrating near 1.2500.

GBP/USD propped up by data

The pair has climbed to fresh multi-day peaks around 1.2520 earlier in the session, picking up extra pace following some auspicious results from the UK labour market, where wage inflation showed signs of a pick up during last month.

Adding to Cable’s upside, the greenback stays on the downside during the first half of the week, forcing the US Dollar Index (DXY) to deflate from highs beyond the 101.00 mark to the mid-100.00s, always influenced by the poor performance from US yields.

Nothing relevant in the US docket today, while the risk appetite trends remain poised to drive the sentiment ahead of Friday’s Retail Sales and inflation figures gauged by the CPI.

GBP/USD levels to consider

As of writing the pair is up 0.04% at 1.2494 facing the next hurdle at 1.2519 (high Apr.12) followed by 1.2562 (high Mar.31) and then 1.2633 (200-day sma). On the other hand, a breakdown of 1.2458 (20-day sma) would expose 1.2419 (100-day sma) and finally 1.2401 (low Apr.11).