The GBP/USD extends its falls well below 1.3000 after UK retail sales unexpectedly dropped, adding to doubts about the BOE's rate hike in August. In addition, the USD is rallying across the board. The UK retail sales fell -0.5% m/m in June with core sales excluding motor fuel sales decreasing -0.6% m/m. Minor upward revisions were not enough to compensate for the disappointment. The US Dollar has been gaining ground amid a hostile exchange of words between the US and China over fruitless negotiations.