GBP/USD retreats from 1.6920

FXStreet (Edinburgh) - After hitting fresh 2-week highs just above 1.6920, the GBP/USD is now deflating back to the 1.6890/85 area.

GBP/USD solid after UK data, BoE

Today’s GBP upside is bolstered by better than expected retail sales in the UK during April, expanding at a monthly pace of 1.3%, up from March’s 0.5% gain. The steady stance from the BoE reflected in today’s minutes is also helping with the sentiment. James Knightley, Analyst at ING Bank, assessed, “With the growth story broadening out we are getting closer to a rate rise from the Bank of England. Our house view remains that the first hike will probably come in February, but given the strength in growth, employment and asset prices the risks are skewed towards a slightly earlier move”.

GBP/USD levels to consider

At the moment the pair is advancing 0.30% at 1.6890 facing the next resistance at 1.6922 (high May 21) followed by 1.6939 (high May 9) and finally 1.6975 (high May 8). On the downside, a break below 1.6831 (low May 21) would open the door to 1.6802 (low May 20) and then 1.6784 (low May 16).