GBP/USD recovers from session low ahead of US data

By FXStreet FXStreet (Mumbai) – The GBP/USD pair hit fresh session low of 1.4325 before recovering slightly to trade around 1.4342 levels ahead of the US advance retail sales data.

Focus on Oil and US data

At the moment, the financial world is centered around oil. The Cable is directly correlated to risk sentiment. Consequently, drop in oil (leads to risk aversion) weighs over GBP/USD and vice versa. The latest drop from 1.4342 to 1.4325 was in line with the drop in oil.

Apart from oil, the focus is also on the US data, which is expected to show the retail sales in the festive month of December contracted.

GBP/USD Technical Levels

The immediate resistance is seen at 1.4372 (76.4% of Jan 09 low-July 14 high), above which the gains could be extended to 1.44 levels. On the other hand, a break below 1.43 would expose 1.4227 (May 2010 low).
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Source:: FX Street