The currency pair declined last week and has tested 1.2108 support area. GBP/USD stays below this level at the moment of writing.

UK GDP data was better than expected last week. However, the result of this release had almost no impact on GBP. Retail sales data had negative impact on GBP/USD on Friday.

We expect GBP/USD to test 1.2108 this week. If the currency pair breaks it down, it can develop the downtrend. Otherwise, GBP/USD will grow targeting 1,2372.