GBP/USD regains poise, 2-month tops eyed ahead of PMI?
|The GBP/USD pair is seen on a stronger footing so far this Friday, looking to extend Thursday’s advances on the back of a broadly weaker USD and renewed hopes of a ‘Soft Brexit’ landing.
GBP/USD re-attempting pre-GBP flash crash levels?
The cable found renewed bids near 1.2570 region and from there took on the recovery on 1.26 handle, in a bid to retest two-month highs reached yesterday at 1.2696 levels.
The pound regained strength post-Tokyo open, as the greenback remains broadly sold-off into a profit-taking spree after upbeat US ISM PMI inspired solid rebound.
While the Asian traders also cheered optimistic comments from the UK Brexit Minister Davis and EU Group President Dijsselbloem, which indicated that it was possible for the UK to maintain access to the European Union’s single market, and hence, re-ignited ‘Soft-Brexit hopes’, bolstered the cable.
Next of note for the spot remains the UK construction PMI release, which will be closely eyed, especially after yesterday’s disappointing UK manufacturing PMI reading. While the main risk event for today remains the US payrolls data due on the cards in the American morning.
GBP/USD Levels to consider
In terms of technical levels, upside barriers are lined up at 1.2650 (psychological levels), 1.2675 (Nov 11 high) and 1.2696 (Dec 1 high). While supports are seen at 1.2596 (daily pivot) and 1.2525 (5-DMA) and below that at 1.2490/80 (10 & 20-DMA).
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