GBP/USD treads water below 1.2700 as the Dollar trims losses
- Pound bulls fail to extend beyond 1.2670.
- UK Manufacturing PMI beats expectations in November.
- The US Dollar ticks up with all eyes on Fed Powell.
Sterling’s rebound seen after the better-than-expected manufacturing data has been short-lived. Bulls have been capped at 1.2675, which leaves the pair in no man’s land with the near-term upside trend losing steam.
UK manufacturing data fails to boost the Pound
UK S&P Global/CIPS Manufacturing PMI improved to 47.2 in November, from 46.7 in October, beyond expectations of a 46.6 reading. Earlier today Nationwide revealed that housing prices increased against expectations in November.
On the other hand, the US Dollar has ticked up from session lows, with te marke bracing for a slew of Fed speakers later today with a special interest on Fed Chairman, Jerome Powell. This is weighing on GBP bulls.
From a technical perspective, the near term remains positive yet price action shows hesitation below 1.2700. The “Evening star” candle pattern in the daily chart suggests the possibility of a downside correction.
Immediate resistance is at 1.2627 ahead of November’s high, at 1.2730. On the downside, supports are 1.2590 and 1.2410.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
