GBP/USD holds near multi-month support near 1.3600 ahead of UK Retail Sales data

• GBP/USD edges lower on Friday in the Asian session.
• US Dollar Index retreats from higher levels but remains elevated.
• The sterling struggles on Fed’s taper plan and downbeat economic data.

GBP/USD edges lower on Friday’s  Asian trading session. After falling from the high of 1.3760 in the US session, the pair hovers in a narrow trade band.

At the time of writing, GBP/USD is trading at 1.3634, down 0.03 % for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades at 93.55. The latest FOMC meeting showed Fed officials are likely to reduce stimulus by the end of this year, provide there is substantial improvement in labor market conditions.

Investors rushed to safe-haven assets in view of the rapid spread of the delta variant and its impact on the global economic recovery.

On the other hand, the sterling continued to struggle against the greenback on risk-aversion.

The UK Gfk Consumer Confidence index slipped down to -8 in August from -7 in the previous month, the highest level since the start of the COVID-19 pandemic.

As for now, investors turn their attention to the GBP Retail Sales data to gauge the market sentiment.

GBP/USD additional levels