Resources on data but dips below 1.3100

• GBP/USD is trading below 1.3100 following the posting of an upbeat retail sales report.
• A daily close above 1.3100 could target further upside, with resistance at 1.3175 and 1.3200, followed by 1.3266.
• A break below 1.3100 may shift momentum to sellers targeting 1.3058 and the September 11 low of 1.3001.

Sterling recovered against the greenback on Tuesday following a better-than-expected retail sales report, but slipped below the 1.3100 mark as the North American session progressed. GBP/USD is trading at 1.3090, basically unchanged.

GBP/USD Price: Technical Insights

Price action is showing some consolidation around the 1.3050 – 1.3120 area for the second day in a row. Even as momentum shifted bearish, according to the Relative Strength Index (RSI), GBP/USD posted an advance on Tuesday and broke through the 1.3100 area.

If the bulls push prices higher and get a daily close above the aforementioned key resistance level, it will open the door for further upside.

This result will expose the October 4 high at 1.3175. Next is the 1.3200 figure, followed by the August 27 daily high of 1.3266 ahead of the 1.3300 threshold.

Conversely, if GBP/USD breaks below 1.3100 and achieves a daily close below the latter, sellers will have the upper hand and be able to challenge the current week’s low of 1.3058 before targeting the 9/11 cycle low of 1.3001.

GBP/USD Price Action – Daily Chart