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