GBP/USD drops from 1.31 as weak UK retail sales support BoE dovish pivot

GBP/USD retreated 0.4% from daily highs near 1.3100 to 1.3045 following disappointing UK retail sales data that reinforced expectations for a dovish Bank of England stance. October retail sales fell 0.3% month-over-month, missing forecasts of 0.1% growth and marking the first decline in three months. The weak consumer spending data adds to mounting evidence of softening UK domestic demand, increasing pressure on the BoE to consider more aggressive rate cuts. Sterling's weakness accelerated as traders priced in higher probability of a December rate reduction. Technical analysis shows GBP/USD breaking below the 1.3070 support level, with next major support at 1.3000 psychological level. The pair faces resistance at 1.3120 (previous support turned resistance). With UK economic momentum fading and the BoE likely to maintain its dovish trajectory, further sterling weakness appears probable in the near term.