GBP/USD offered at 1.2650, drops to test 1.26 ahead of PMI

Dhwani Mehta FXStreet

The GBP/USD pair stalled its overnight recovery at the mid-point of 1.26 handle, sending the rate sharply lower in a bid to retest the last amid fresh buying seen in the US dollar against its main competitors.

GBP/USD awaits UK PMI

The cable trims gains in the European session on the back of resurgent USD demand amid a recovery, as the treasury yields turn positive ahead of the US NFP report.

Moreover, a renewed bout of risk-aversion gripped Europe and weighed on the risk currencies such as GBP, while the European equities tumble -0.90% to -1.30% amid Italian referendum-induced jitters.

Also, expectations of a weaker UK construction PMI report dents the sentiment around the major, as investors moved past renewed Soft-Brexit hopes-led optimism.

GBP/USD Levels to consider

In terms of technical levels, upside barriers are lined up at 1.2649/50 (daily high/ 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).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2433

36% Bullish
36% Bearish
29% Sideways

Bias Neutral

1 Month

Avg Forecast 1.2409

24% Bullish
59% Bearish
18% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.2293

5% Bullish
47% Bearish
47% Sideways

Bias Bearish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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