The GBP/USD pair built on the previous day's bounce from the vicinity of the weekly low, around the 1.2170-1.2160 area and gained some positive traction on Friday. The pair maintained its bid tone through the early North American session, though seemed to struggle to capitalize on the move or find acceptance above the 1.2300 round-figure mark.
The UK Office for National Statistics reported this Friday that the headlines Retail Sales contracted by 0.5% MoM in May as against the 1.4% growth recorded in the previous month. The core retail sales, stripping the auto motor fuel also decelerated sharply and fell 0.7% MoM from the 1.4% in April, raising concerns over the British economic growth.

The incoming softer UK economic data further fueled recession fears and reaffirmed market bets that the Bank of England would opt for a more gradual approach toward raising interest rates. In contrast, the Federal Reserve is expected to stick to its aggressive policy tightening path and deliver another 75 bps rate hike at its next policy meeting in July. It will be prudent to wait for strong follow-through buying beyond the weekly high, around the 1.2325 region, before positioning for any further appreciating move. 

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