Cable falls to its lowest level since 27 November 2019
The pound is having none of the better-than-expected retail sales data earlier today as it continues to fall against the dollar to fresh lows for the year.
It is looking a bit dicey for sterling right now nearer towards 1.2820-30 before the 1.2800 comes into play next.
Despite the better data deluge this week, there is still little indication that recent developments will see a major U-turn in BOE sentiment. What the pound needs is more consistent data like the ones this week over the next few weeks.
And in that regard, this is where the optimism falls short for the time being. All that said, the data hurdle this week isn't quite over as we will have PMI readings tomorrow.
From a technical perspective, the break below the 100-day MA (red line) is giving sellers a firmer conviction to chase a move to the downside for now. For buyers, it is about trying to stay afloat above 1.2900 but things are looking tough.
The fact that EUR/GBP is bouncing heavily off a test of the 0.8300 handle yet again isn't making it easy for the pound either on the week.
