GBP/USD regains 1.3400 and beyond on UK data

• Cable retakes the 1.3400 handle on upbeat UK data.
• The pair extends the rebound from recent lows near 1.3300.
• UK Retail Sales expanded 1.6% MoM and 1.4% YoY in April.

Happy days for the Sterling following an upbeat note from April’s Retail Sales, with GBP/USD advancing to fresh daily highs above 1.3400 the figure.

GBP/USD higher on upbeat data

Cable extended the recovery beyond the 1.3400 milestone today after UK’s Retail Sales surprised to the upside, expanding at a monthly 1.6% in April and 1.4% over the last twelve months.

In addition, Core Retail Sales also came in on the strong side, expanding 1.3% inter-month and 1.5% on an annualized basis.

In the meantime, today’s softer tone in the buck plus upbeat results in the UK calendar are lending extra legs to Cable today, managing to rebound from the vicinity of the 1.3300 handle on Wednesday, levels last traded in December 2017.

GBP/USD levels to consider

As of writing, the pair is gaining 0.46% at 1.3410 and a break above 1.3474 (10-day sma) would open the door to 1.3573 (200-day sma) and then 1.3658 (2017 high Sep.20). On the other and, initial contention emerges at 1.3306 (2018 low May 23) seconded by 1.3302 (monthly low Dec.18) and finally 1.3039 (monthly low Nov.3 2017).