GBP/USD faces rejection below 50-DMA

The GBP/USD pair is consolidating in a tight range near the lower bound of today trading range so far, having faced strong resistance just below 50-DMA now located at 1.3189.

GBP/USD off 2-week tops

Currently, GBP/USD drops -0.21% to 1.3140, retreating slightly from fresh session lows struck at 1.3129. The cable appears to stall its retreat from 2-week lows in early European trading, as the renewed buying interest seen behind the US dollar seems to have waned, with investors now awaiting fresh impetus from the European session, amid a data-light UK docket for today.

The slide in the GBP/USD pair is also on the back of a correction after the pound extended its rally on Thursday, in wake of upbeat UK fundamentals, with the latest one being the UK retail sales. The greenback also remains better bid against its major peers as the bulls continue to cheer better-than expected US regional manufacturing data as well as weekly jobless claims.

Calendar-wise, we have nothing much to report except for the UK public sector net borrowings data due later in the day ahead.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3186/89 (2-week top/ 50-DMA), above which 1.3250 (psychological levels) would be tested. On the flip side, support is seen at 1.3092  (20-DMA) below that at 1.3055 (5-DMA).