GBP/USD around 1.2900 ahead of UK retail sales

The Sterling seems to have recovered the smile in the second half of the week, with GBP/USD now gravitating around 1.2900 the figure ahead of the opening bell in Euroland.

GBP/USD focus on UK data

Cable is posting its second consecutive session with gains so far today mainly helped by the renewed weakness surrounding the greenback.

In fact, the US Dollar Index stays on the defensive in response to the dovish tone from the FOMC minutes on Wednesday, while effervescence appears to have resurfaced in the US political scenario.

Ahead in the day, UK’s retail sales for the month of July are due, while the Philly Fed manufacturing gauge, industrial production and capacity utilization are all expected across the ocean. In addition, Dallas Fed R.Kaplan (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) are due to speak.

Cable should also stay wary of the publication of the ECB minutes and the potential effects on EUR/GBP.

GBP/USD levels to consider

As of writing the pair is gaining 0.05% at 1.2898 facing the next hurdle at 1.2931 (55-day sma) followed by 1.2968 (10-day sma) and finally 1.3007 (38.2% Fibo of 1.2587-1.3266). On the flip side, a break below 1.2843 (low Aug.16) would open the door to 1.2808 (low Jul.12) and finally 1.2747 (76.4% Fibo of 1.2587-1.3266).