GBP/USD holding on to1.3500 post-PMI
- UK manuf PMI surprised to the upside at 58.2.
- Cable gyrates around 1.3500.
- Upside so far capped in the mid-1.3500s.
GBP/USD stays within the negative territory so far today around the 1.3500 handle despite auspicious print from the UK docket.
GBP/USD upside stalled near 1.3550
After three consecutive sessions with gains, Cable seems to have met strong resistance in the mid-1.3500s, sparking the current knee-jerk.
GBP stays offered today despite the key UK’s manufacturing PMI came in above expectations at 58.2 for the month of November vs. 56.5 initially forecasted and October’s 56.6 (revised from 56.3).
In the meantime, positive headlines and renewed optimism around the Brexit negotiations plus the persistent weakness surrounding the greenback gave extra legs to the GBP rally, which gained around 5% since November’s lows in the 1.3040 area.
GBP/USD levels to consider
As of writing, the pair is losing 0.27% at 1.3493 and a break below 1.3416 (2014-2017 down trend line) would aim for 1.3353 (10-day sma) and then 1.3268 (55-day sma). On the other hand, the immediate up barrier aligns at 1.3550 (high Dec.1) seconded by 1.3658 (2017 high Sep.20) and finally 1.3700 (psychological level).