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GBP/USD wobbles around 1.4300, focus on EU Summit

The British pound has now recovered part of the drop towards 1.4270 vs. the dollar, with GBP/USD orbiting around the key 1.4300 barrier.

GBP/USD attention to EU-UK headlines

Spot keeps its losses so far, more concerned on the developments from the EU-UK talks under the EU Summit and practically ignoring today’s results from UK retail sales, surprising markets to the upside during January.

In the meantime, the pair has eroded most of the recent advance to the 1.4670 area observed in early February, all in response to the resurgence in the US dollar and a pick up in the risk aversion seen in recent sessions.

GBP/USD levels to consider

As of writing the pair is retreating 0.32% at 1.4285 and a break below 1.4200 (psychological level) would aim for 1.4171 (low Jan.26) and then 1.4147 (low Jan.29). On the upside, the next resistance lines up at 1.4403 (20-day sma) followed by 1.4522 (38.2% Fibo of 1.5240-1.4079) and finally 1.4607 (55-day sma).

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