GBP/USD side-lined near 1.3170, poor BRC retail sales still weigh

• USD index firmer in Asia.
• Consolidates yesterday’s upsurge.
• Downside opening up on downbeat UK data and politics.

The GBP/USD pair trades modestly flat heading towards the European session, as the bulls take a breather after yesterday’s massive rally, with the pound having reversed half the BOE-led slide.

GBP/USD: 1.3200 still on sight?

The spot is seen flirting with daily lows of 1.3163, as the sentiment remains weighed down by downbeat BRC retail sales data, which came in at -1% in three months to October vs. 1.9% previous.

Moreover, Cable also remains subdued on the back of the latest warning issued by the UK’s National Audit Office (NAO) over the Brexit uncertainty and its implications on the public finances.

Meanwhile, a lack of significant fundamental drivers from the UK docket today also leaves the major side-lined in a 15-pips tight range. Also, notable USD demand across the fx board collaborates to the stalled upside in the pair.

Attention now turns towards the UK Halifax HPI data for some impetus on the pound, while the US JOLTS job openings data and FOMC member Quarles speech due later today will be eyed for near-term trading opportunities.

GBP/USD Technical View

Jim Langlands at FX Charts, explained: “The short-term momentum indicators now look positive although the dailies are neutral so a cautious stance is required. But a break of nearby resistance at 1.3175/80 would then allow for a run towards 1.3225/50. On the downside, support will be seen at 1.3150 and then at 1.3130, below which could see a run back to 1.3100 and the session low of 1.3057 although this looks unlikely.”