GBP/USD holds break below major trend support at 1.2520 – Scotiabank

The Pound Sterling (GBP) is flat on the session. UK Retail Sales rose a softer than expected 0.2% in November (versus +0.5% forecast), extending a run of disappointing Retail Sales data, Scotiabank’s Chief FX Strategist Shaun Osborne reports.

Cable is soft, struggling to regain 1.2520

“UK Retail Sales rose a softer than expected 0.2% in November (versus +0.5% forecast), extending a run of disappointing Retail Sales data. Poor weather may have had some impact on consumer activity last month but the run of soft consumption reports does suggest weaker growth momentum into the end of the year.”

“Cable is struggling to regain 1.25+ levels after losses yesterday took the pound below major trend support at 1.2520 (now resistance). Intraday price action reflects a very weak bid for the pound off the lows so far but regaining 1.2520+ into the close of the week might mitigate developing bearish pressure for a drop back to the 1.23 area.”