GBP/USD sits at the highs for the day at 1.2075
That said, the range today is rather subdued as the pair holds within a 24 pips range only. However, price is starting to creep above the 100-hour MA (red line) for the moment and that is at least some near-term technical reprieve for the buyers.
UK retail sales data will be the next key risk event later on today (scheduled for 0830 GMT) but I won’t expect it to make a major splash in driving direction for the pair.
Much like wages and inflation data earlier this week, the report here won’t do much to change the current BOE outlook (Brexit-dependent) and with Brexit uncertainty lingering, there isn’t any reason for traders to get carried away by any positive readings.
From a technical standpoint, the 1.2100 handle has been a key resistance level this week so expect sellers to be lurking there once again today with the 200-hour MA (blue line) @ 1.2109 also providing an added layer of resistance.
Only if buyers can find a break above those levels, then there would be a more convincing argument for a short-term reprieve for the pound ahead of renewed Brexit focus when September comes.