GBP/USD retreats 0.21% to 1.3310 in early Asian trading as USD demand resurfaces
Market participants await UK March Retail Sales data for fresh directional cues
Potential US-UK trade agreement discussions create mixed sentiment for Sterling
The Will Cardano ADA reach ?British Pound continues its gradual descent against the US Dollar during Friday's Asian session, with the GBP/USD exchange rate hovering near the 1.3310 support level. This movement reflects renewed strength in the Greenback as traders position themselves ahead of significant economic releases from the United Kingdom.
Currency markets are currently weighing two competing narratives. On one hand, optimism surrounds potential trade negotiations between UK and US officials scheduled for later today. Finance Minister Rachel Reeves expressed confidence about reaching a bilateral agreement that could mitigate the impact of existing tariffs on British exports.
However, broader macroeconomic concerns continue to cloud the Pound's outlook. The International Monetary Fund's recent downward revision of UK growth projections to 1.1% for 2025, coupled with expectations of multiple Bank of England rate cuts, creates fundamental headwinds for the currency.
All eyes now turn to the UK Retail Sales report for March, scheduled for release later today. Market consensus anticipates a 0.4% monthly contraction following February's 1% expansion. A surprise upside deviation could provide temporary relief for Sterling bulls, while weaker-than-expected results may accelerate the pair's decline toward psychological support at 1.3300.
Traders should monitor several technical levels in the sessions ahead. Immediate resistance appears near Thursday's high of 1.3340, while sustained trading below 1.3300 could open the door for a test of the April low around 1.3275. The relative strength index currently sits in neutral territory, suggesting room for further movement in either direction depending on fundamental catalysts.
