GBP/USD retreats from 2-week tops, bulls shrug off upbeat UK PMIs


  • UK Manufacturing and Services PMI surpass market expectations.
  • GBP/USD bulls failed to capitalize on the intraday positive move.

The GBP/USD pair faded an intraday bullish spike to fresh two-week tops, levels beyond mid-1.3100s, and has now retreated to the lower end of its daily trading range.

Following the previous session's modest pullback, the pair managed to regain some positive traction on the last day of the week and the uptick got a minor lift following the release of stronger-than-expected UK PMI prints.

In fact, the flash version of the UK Manufacturing PMI for January moved closer to the expansion territory and came in at 49.8 as compared to a bounce to 48.9 expected and the previous month's final reading of 47.5.

Adding to this, the preliminary UK Services PMI also bettered market expectations by printing 52.9 for January and prompted traders to scale back expectations of a BoE rate cut at its policy meeting next week.

Despite the supporting factors, the pair failed to capitalize on the positive momentum, rather met with some aggressive supply at higher levels and quickly retreated around 45-50 pips over the past hour or so.

It will now be interesting to see if the pair is able to attract any dip-buying at lower levels or the current pullback marks the end of the recent positive momentum and the resumption of the prior corrective slide.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3149
Today Daily Change 0.0029
Today Daily Change % 0.22
Today daily open 1.312
 
Trends
Daily SMA20 1.3092
Daily SMA50 1.3053
Daily SMA100 1.2831
Daily SMA200 1.2691
 
Levels
Previous Daily High 1.3152
Previous Daily Low 1.3097
Previous Weekly High 1.312
Previous Weekly Low 1.2954
Previous Monthly High 1.3515
Previous Monthly Low 1.2896
Daily Fibonacci 38.2% 1.3118
Daily Fibonacci 61.8% 1.3131
Daily Pivot Point S1 1.3094
Daily Pivot Point S2 1.3068
Daily Pivot Point S3 1.3039
Daily Pivot Point R1 1.3149
Daily Pivot Point R2 1.3178
Daily Pivot Point R3 1.3204

 

 

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