“¢ Investors looked past Friday’s UK GDP/latest UK manufacturing PMI.
“¢ Resurgent USD demand/Brexit uncertainties prompt some fresh selling.
“¢ Traders now eye US ISM PMI for some short-term opportunities.
The GBP/USD pair quickly reversed the UK PMI-led uptick to 1.3175-80 region and refreshed session lows in the last hour.
Currently trading around the 1.3140-35 region, the pair struggled to build on Friday’s strong up-move, led by an upward revision of the UK GDP growth figures for the first quarter of 2018 and traded with a negative bias for the fourth session in the previous five.
Today’s better-than-expected UK manufacturing PMI, coming in at 54.4 for June, did provide a minor lift during the early European session but the attempted recovery move was quickly sold into amid uncertainties surrounding Brexit negotiations.
This coupled with resurgent US Dollar demand, despite the ongoing slide in the US Treasury bond yields, further collaborated towards keeping a lid on any meaningful up-move for the major.
Traders now look forward to the US ISM manufacturing PMI for some fresh impetus, which along with this week’s other heavyweight market moving economic releases would help determine the pair’s next leg of directional move.
Technical levels to watch
Any subsequent fall is likely to find support near the 1.3110-1.3100 area, below which the pair is likely to head back towards retesting YTD lows support near mid-1.3000s, set last Thursday. On the upside, the 1.3200 handle now seems to have emerged as an immediate hurdle, which if cleared might assist the pair to aim towards reclaiming the 1.3300 round figure mark.
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