GBP/USD fell toward 1.3150 in the early European session after disappointing Retail Sales data from the UK but managed to erase its daily losses. Supported by the improving market mood, the pair clings to modest daily gains near 1.3200.
The 50-period and the 100-period SMAs on the four-hour chart seem to have formed strong support at 1.3160. The Fibonacci 38.2% retracement of the latest downtrend reinforces that level as well. In case sellers drag the pair below that support, the next bearish targets could be seen at 1.3130 (static level) and 1.3100 (psychological level, Fibonacci 23.6% retracement).
On the upside, GBP/USD could extend its rebound toward 1.3260 (Fibonacci 61.8% retracement) if buyers manage to flip 1.3200 (psychological level, Fibonacci 50% retracement, 20-period SMA) into support.
