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GBP/USD drops below 1.4270, EU Summit weighs

The British pound is intensifying its bearish trend at the end of the week, with GBP/USD now testing the lower band of the range in the 1.4270/65 area.

GBP/USD weaker, looking to EU Summit

The pair left the area of session highs around 1.4340 posted during the European morning, accelerating its downside after solid figures from UK Retail Sales have failed to sustain a durable upside reaction.

The lack of progress from the EU-UK talks in Brussels seems to be weighing on GBP sentiment, where sources have not ruled out a continuation of the negotiations over the weekend.

GBP/USD levels to consider

As of writing the pair is retreating 0.43% at 1.4269 and a break below 1.4200 (psychological level) would aim for 1.4171 (low Jan.26) and then 1.4147 (low Jan.29). On the upside, the next resistance lines up at 1.4403 (20-day sma) followed by 1.4522 (38.2% Fibo of 1.5240-1.4079) and finally 1.4607 (55-day sma).

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