Once again 1.3000 has proved a step too far for GBPUSD 18 May
The strong sell interest/resistance at 1.3000 has been well documented on these pages and elsewhere and it's proven to be once again.
General USD demand after the recent falls ( USDJPY up to 111.33 from 110.53, EURUSD down to 1.1139 from 1.1172) has helped cap the cable advance and retreat to 1.2958 so far.
Expect bids/support between 1.2950-55 given the resistance there on the way up with large buy interest, some option related, at 1.2900 below that.
UK retail sales today at 08.30 GMT is unlikely to provide any great support but a weaker number is probably factored in given the wages/inflation issue. Risk therefore may be to the upside on a better than expected number.
I remain a rally seller while we're ranging still. 1.2850-1.3000.
