GBP/USD refreshes session lows post-UK PMIs, eyeing 1.3300 mark
|- GBP/USD loses traction on disappointing UK PMI prints.
- Brexit optimism should help limit the downside, for now.
The GBP/USD pair failed to capitalize on its early uptick and refreshed session lows, around the 1.3330-25 region on disappointing UK PMI prints.
Following the previous session's late pullback from levels beyond the key 1.3500 psychological mark or 18-month tops, the pair managed to regain some positive traction on the first day of a new trading week amid the prevalent US dollar selling bias.
Despite a modest pickup in the US Treasury bond yields, supported by the prevalent risk-on mood triggered by the latest trade optimism, the US dollar struggled to attract any buying interest and was seen as one of the key factors driving the pair higher.
The uptick, however, lacked any strong follow-through and fizzle out rather quickly near the 1.3420-25 region. Meanwhile, the latest leg of a move lower could further be attributed to the disappointing release of flash UK Manufacturing and Services PMI prints for December.
In fact, the UK manufacturing sector activity dropped at the fastest pace since July 2012 in December and the flash UK Services Business Activity Index for December came in at nine-month lows, both missing consensus estimates and exerted some pressure on the British pound.
Meanwhile, the downside is likely to remain limited, rather attract some dip-buying interest lower odds of a no-deal Brexit, especially after the incumbent Conservative Party recorded landslide victory at the most important UK Parliamentary elections on December 12.
Technical levels to watch
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