GBP/USD treads water below 1.2700 as the Dollar trims losses

Guillermo Alcala FXStreet

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

GBP/USD

Overview
Today last price	1.2654
Today Daily Change	0.0030
Today Daily Change %	0.24
Today daily open	1.2624

Trends
Daily SMA20	1.2457
Daily SMA50	1.2289
Daily SMA100	1.2486
Daily SMA200	1.2468

Levels
Previous Daily High	1.2711
Previous Daily Low	1.2604
Previous Weekly High	1.2616
Previous Weekly Low	1.2446
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.2644
Daily Fibonacci 61.8%	1.267
Daily Pivot Point S1	1.2581
Daily Pivot Point S2	1.2539
Daily Pivot Point S3	1.2474
Daily Pivot Point R1	1.2688
Daily Pivot Point R2	1.2753
Daily Pivot Point R3	1.2796

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.

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