GBP/USD eases from tops, up little around 1.2900 mark

Tuesday’s upbeat UK services PMI helped regain positive traction.
UK political uncertainty seemed to keep a lid on any runaway rally.
A modest USD uptick exerts some pressure ahead of US ISM PMI.

Haresh Menghani FXStreet

The GBP/USD pair climbed to fresh session tops, further beyond the 1.2900 handle in the last hour, albeit quickly retreated few pips thereafter.

The British Pound remained well supported by the fact that the incoming opinion polls have been indicating a majority for the UK Prime Minister Boris Johnson's Conservative Party at the upcoming election in December.

Upside remains capped

The uptick got an additional boost following the release of stronger-than-expected UK services PMI, which unexpected recovered back into expansion territory and came in at 50.0 for October as compared to 49.7 expected.

The pair jumped to an intraday high level of 1.2918 in the last hour, albeit lacked any strong follow-through as investors refrained from placing fresh bets amid the inherent uncertainty over the actual outcome of the UK election.

This coupled with a modest US Dollar uptick, supported by the ongoing upsurge in the US Treasury bond yields and renewed optimism over a possible US-China trade deal, further collaborated towards capping gains.

Moving ahead, Tuesday's economic docket also highlights the release of US ISM non-manufacturing PMI, which might influence the USD price dynamics and produce some meaningful trading opportunities.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2906
Today Daily Change	0.0026
Today Daily Change %	0.20
Today daily open	1.288

Trends
Daily SMA20	1.277
Daily SMA50	1.2505
Daily SMA100	1.2446
Daily SMA200	1.271

Levels
Previous Daily High	1.2943
Previous Daily Low	1.2875
Previous Weekly High	1.2976
Previous Weekly Low	1.2804
Previous Monthly High	1.3013
Previous Monthly Low	1.2194
Daily Fibonacci 38.2%	1.2901
Daily Fibonacci 61.8%	1.2917
Daily Pivot Point S1	1.2855
Daily Pivot Point S2	1.2831
Daily Pivot Point S3	1.2787
Daily Pivot Point R1	1.2923
Daily Pivot Point R2	1.2967
Daily Pivot Point R3	1.2991

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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