GBP/USD keeps the red near one-week lows after mixed US releases

The GBP/USD pair held on to its daily losses, albeit bounce off few pips from one-week low to currently trade around 1.2860 region following the release of US macro data.

Spot caught some fresh bids after data released from the US showed headline inflation, as measured by CPI, rose 0.2% on a monthly basis, while excluding food and energy (core CPI) climbed mere 0.1%. The disappointment, however, came from yearly CPI print, which dropped to 2.2% during April as compared to 2.4% in the previous month. 

Adding to this, monthly retail sales recorded a lower-than-expected growth 0.4% during April, while core sales (excluding automobiles) matched estimates and grew 0.3% m-o-m. Additional details revealed that last month’s retail sales figure were revised higher, turning the initial reaction to the data short-lived. 

Despite of today’s slightly disappointing US economic data, market players seemed convinced that the Fed would eventually move towards raising interest-rates at its June meeting, which further collaborated towards limiting any additional recovery for the major.
 
Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "Technically, the pair is poised to extend its decline, moreover after another failure to surpass the 1.3000 level. In the 4 hours chart, the price has moved further below a now bearish 20 SMA, whilst technical indicators accelerated their slides within negative territory, with the RSI now approaching oversold readings."