GBP/USD trims gains and retreats to the mid-1.2700s
|- Cable gives away initial gains and recedes to the 1.2750 region.
- UK’s manufacturing PMI came in at 53.1 in November.
- Brexit negotiations to come to the fore later in the week.
After climbing to fresh highs beyond 1.2820, GBP/USD has now faded that initial optimism and is now navigating the mid-1.2700s, just clinging to its daily gains.
GBP/USD looks to Brexit, risk trends
Cable inched further north of the critical 1.2800 barrier during the Asian session on the back of an improved tone in the riskier assets, all after the positive outcome from the Trump-Xi meeting, where a 90-day truce in the US-China trade spat was clinched.
Back to the UK, all the attention will be of course on Brexit and the debate in the House of Commons starting tomorrow, while the key vote on PM May’s deal is expected a week later.
Later in the day, the US docket will be in centre stage where the ISM manufacturing will be the main release along with speeches by key FOMC members.
GBP/USD levels to consider
As of writing, the pair is up 0.02% at 1.2748 facing the next hurdle at 1.2825 (high Dec.3) seconded by 1.2883 (21-day SMA) and then 1.2928 (high Nov.22). On the other hand, a breach of 1.2724 (low Nov.15) would open the door to 1.2696 (low Oct.30) and finally 1.2662 (2018 low Aug.15).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.