GBP/USD hung up near 1.2540 after Thursday spike into 1.2575

GBP/USD briefly saw a ten-week high after UK PMIs beat the street.
Markets are notably constrained with US markets dark for the Thanksgiving holiday.
Next up will be Friday's US PMI flash reading.

Joshua Gibson FXStreet

The GBP/USD is trading tightly near 1.2540 after seeing a brief tip into a ten-week high on a surprise upside beat in UK Purchasing Managers' Index (PMI) figures early Thursday.

The pair spent the back half of the trading day trading into the middle with money markets seeing a severe decline in overall liquidity and volume with US market shuttered for the day for the US Thanksgiving holiday.

US market participants will be returning to the fold in reduced hours tomorrow to close out the trading week.

UK Preliminary Services PMI returns to expansion with 50.5 in November

The Pound Sterling (GBP) caught a bid into its highest bids against the US Dollar (USD) after a better-than-expected PMI print, with both the Services and Composite components returning to expansionary territory, at 50.5 and 50.1 respectively.

The Services PMI was expected to hold steady at 49.5, and the Composite was likewise seen flat at 48.7.

The trading week will close out with US PMI figures in the back half of the trading day. Investors will be looking for only a minor downtick in the US figures.

The US Manufacturing PMI for November is forecast to decline from October’s flat 50.0 into contraction territory at 49.8, while the Services component is expected to tick lower from 50.6 to 50.4.

GBP/USD Technical Outlook

With the GBP/USD briefly testing its highest bids since early September, the pair has set a new near-term technical ceiling at 1.2575, although daily candlesticks show the pair has been struggling to develop meaningful momentum above the 200-day Simple Moving Average (SMA).

The pair has struggled to move too far in either direction after piercing the long-term moving average last week.

The 50-day SMA is rotating into a bullish lean from just below 1.2300, and a technical floor is priced in from the last swing low into the 1.2200 handle.

GBP/USD Daily Chart

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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