The GBP/USD pair edged lower on Friday, halting a two-day winning streak as market participants shifted attention to the upcoming UK Retail Sales data. The currency pair dipped below the 1.2400 level, reflecting renewed caution among traders ahead of key economic indicators expected to shed light on consumer spending trends in the UK.
The pullback follows gains driven by improving risk sentiment earlier in the week. However, the lack of significant data on Thursday left the pound vulnerable to broader market dynamics, including concerns over the UK’s economic resilience and global risk-off sentiment. Investors remain wary of weak retail performance potentially underscoring slower economic growth, a factor that could weigh on the Bank of England’s monetary policy decisions in the coming months.
As markets await the retail sales report, any signs of weaker consumer activity could further pressure the pound, while stronger-than-expected results might offer temporary relief. The focus remains on broader economic trends, with traders also closely monitoring U.S. Treasury yields and dollar strength, which continue to influence GBP/USD dynamics.
