GBP/USD weaker, comes down to 1.3120

The Sterling is giving away part of yesterday’s strong gains beyond 1.3170 vs. the greenback, now sending GBP/USD to the 1.3125/20 band.

GBP/USD lower on USD buying

The renewed buying pressure around the greenback is impacting on the risk-associated space at the end of the week, prompting the pair to recede towards the 1.3120 region after reaching 2-week highs in the vicinity of the 1.3200 handle on Thursday.

On the UK’s data front, Public Sector Net Borrowing dropped to nearly £1.5 billion in July, up from almost £7.5 billion recorded in June. The data add to the auspicious results from Retail Sales seen earlier in the week.

In the meantime, spot is reverting two weeks with losses and is extending the rebound from recent lows in the 1.2870/65 band, although gains appear so far capped in the upper-1.3100s.

GBP/USD levels to consider

As of writing the pair is retreating 0.28% at 1.3133 and a breakdown of 1.2863 (low Aug.15) would aim for 1.2849 (low Jul.11) and then 1.2796 (2016 low Jul.6). On the other hand, the initial hurdle emerges at 1.3186 (high Aug.19) ahead of 1.3373 (high Aug.3) and then 1.3481 (high Jul.15).