• The USD fails to preserve gains and helped stage a solid rebound from 20-month lows.
• The UK construction PMI comes in at 52.8 vs. 52.9 expected but does little to influence.
• Traders now look forward to the US economic docket for some fresh trading impetus.
The GBP/USD pair has managed to recover a major part of the early lost ground to near 20-month lows and is currently placed at the top end of its daily trading range post-UK PMI.
The pair initially extended overnight sharp retracement slide and tumbled to sub-1.2400 level, the lowest since April 2017, during the Asian session in a knee-jerk reaction to a fresh wave of global risk aversion trade.
The global flight to safety underpinned the US Dollar's relative safe-haven demand against its British counterpart, which coupled with relatively thin liquidity conditions triggered a flash crash.
However, the greenback struggled to preserve early gains, which eventually turned out to be one of the key factors that helped the pair to catch some fresh bids and recover around 180-pips from daily swing lows.
Meanwhile, a slight miss from the latest UK construction PMI, coming in at 52.8 for December as compared to 52.9 expected, did little to impress the bulls and provide any meaningful bullish impetus.
It, however, remains to be seen if the pair is able to extend the recovery momentum or meets with some fresh supply at higher levels as market participants look forward to the US economic docket for fresh impetus.
Technical levels to watch
GBP/USD
Overview:
Today Last Price: 1.2581
Today Daily change: -31 pips
Today Daily change %: -0.246%
Today Daily Open: 1.2612
Trends:
Previous Daily SMA20: 1.2658
Previous Daily SMA50: 1.2779
Previous Daily SMA100: 1.2898
Previous Daily SMA200: 1.317
Levels:
Previous Daily High: 1.2774
Previous Daily Low: 1.2581
Previous Weekly High: 1.2778
Previous Weekly Low: 1.2616
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Previous Daily Fibonacci 38.2%: 1.2655
Previous Daily Fibonacci 61.8%: 1.27
Previous Daily Pivot Point S1: 1.2537
Previous Daily Pivot Point S2: 1.2463
Previous Daily Pivot Point S3: 1.2344
Previous Daily Pivot Point R1: 1.273
Previous Daily Pivot Point R2: 1.2849
Previous Daily Pivot Point R3: 1.2923
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