GBP/USD bounces-off 1.2350 ahead of UK PMI

Fresh bids emerged at the mid-point of 1.23 handle, allowing a tepid-bounce in GBP/USD back towards the immediate resistances located near 1.2380 region.

The GBP bulls were rescued from three-week troughs, after the treasury yields stalled its upward march and eased-off highs, while Trump’s speech led risk-on rally in the European equities also underpinned the sentiment around the risk currency GBP.

The immediate focus for the major now remains on the upcoming UK manufacturing PMI data, which is expected to tick lower to 55.5 in February versus January’s 55.9 reading. Poor PMI report may cap the recovery in cable, and could push the cable back towards multi-week lows.

GBP/USD Levels to consider            

At 1.2390, the resistances are aligned at 1.2443/50 (10-DMA) and 1.2466 (20-DMA) and below that at 1.2500 (zero figure). On the flip side, the supports are lined up at 1.2351 (3-week low) and 1.2300 (round figure) and below that at 1.2256 (Jan-end lows).