GBP/USD struggling to gain further traction, now eyeing US ISM PMI

Haresh Menghani FXStreet

The GBP/USD pair was seen struggling to build on to recovery move and has now retreated around 25-30 pips from session peak.

Currently trading around 1.2710-15 region, strong UK services PMI helped the pair to reverse Italian referendum-led early losses to 1.2625 and lifted it back above 1.2700 handle. Today's upbeat services PMI added on to Friday's better-than-expected UK construction PMI and boosted the pair to its highest level since Oct. 6. The pair, however, failed to attract any follow through buying interest and remained anchored below mid-1.2700s.

Market participants now look forward to the US economic docket, featuring the release of ISM non-manufacturing PMI, for fresh impetus during NA session.

Technical levels to watch

Weakness back 1.2700 handle, leading to a subsequent break below 1.2690 horizontal support, seems to drag the pair back towards session low support near 1.2625 with 1.2665-60 area acting as intermediate support. On the upside, 1.2725 level now seems to have emerged as immediate hurdle above which a fresh bout of short-covering now seems to open room for further up-move towards 100-day SMA resistance near 1.2800 round figure mark.

1. R3 1.2794
2. R2 1.2753
3. R1 1.2709
PP 1.2668
1. S1 1.2625
2. S2 1.2584
3. S3 1.2541

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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