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GBP/USD: Minor-recovery stalls near 1.4950

FXStreet (Mumbai) - The bid tone on the US dollar gathered pace in mid-Asia, sending GBP/USD back towards 1.49 handle amid mixed sentiment in the Asian equities.

GBP/USD heads towards 8-month lows

The GBP/USD pair drops -0.12% to 1.4929, having posted fresh session lows at 1.4922 some minutes ago. The bearish pressures on the cable remains as markets continue to weigh the recent set of poor PMIs from the UK. The UK manufacturing PMI fell to 52.7 in Nov versus 55.2 seen previously while the Nov construction sector gauge plunged to the lowest in seven months, coming in at 55.3 from 58.8 in Oct.

While on the other side, the greenback continues to ride higher across the board (reached 12 year highs on Wednesday) on the back of upbeat comments from Yellen and solid US ADP jobs report, which fanned Dec rate hike hopes further.

Looking ahead, markets now await the UK services PMI data due later today for fresh cues on the BOE interest rates outlook. While all eyes will be focussed on the ECB decision, which is likely to have major impact on the EUR, with a ‘rub-off’ effect on the GBP expected as well.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4941/53 (1h 10-SMA/ daily high), above which 1.4975/77 (daily pivot/ 1h 20-SMA) would be tested. On the flip side, support is seen at 1.4900 (daily Low) below which it could extend losses to 1.4948 (Jan Lows).

GBP/USD is oversold on several parameters

GBP/USD is oversold on several parameters
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