GBP/USD retreats from 8-week high after upbeat US ISM PMI

Haresh Menghani FXStreet

Having jumped to 8-week high near 1.2700 region, the GBP/USD pair trimmed some of its strong gains and has now retraced around 75-pips from session peak.

Currently trading around 1.2625-30 region, the pair ran through fresh offers as the US Dollar attracted fresh buying interest after stronger-than-expected ISM manufacturing PMI print for the month of November. In fact, the gauge measuring activity in the US manufacturing sector jumped to 5-month high and came-in at 53.2 as compared to 52.2 expected and 51.9 reported in October.

Upbeat manufacturing data, coupled with Wednesday's strong ADP report, supported the optimistic view of a stronger US economic growth going forward and continues to underpin the greenback.

Focus now shifts to Friday's official monthly jobs report, which if adds to the recent slew of upbeat US economic data should trigger a fresh leg of up-move for the US Dollar and might drag the pair farther from today's 8-week highs.

Technical levels to watch

Renewed weakness below 1.2600 handle now seems to attract fresh selling pressure and turn the pair vulnerable to head back towards 1.2540-35 resistance break-point, now turned support. On the upside, 1.2650 level now becomes immediate resistance above which the pair is likely to make a fresh attempt towards testing 1.2700 handle.

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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