Firming expectations for negative BoE rates exerted some pressure on GBP/USD. Reviving safe-haven demand underpinned the USD and added to the selling bias. Better-than-expected flash UK PMI prints extended some support to the sterling. The GBP/USD pair maintained its offered tone through the early European session, albeit recovered around 25-30 pips following the release of UK PMIs. The pair witnessed some follow-through selling for the second straight session on Thursday and extended the overnight pullback from the vicinity of the 1.2300 mark. The mentioned level coincides with 100-day SMA, which has been acting as a key hurdle over the past two trading session and kept a lid on the GBP/USD pair’s recovery from multi-week lows set earlier this week. The British pound was being weighed down by the fact that the Bank of England Governor Andrew Bailey – while testifying before the Treasury Select Committee on Wednesday – did not rule out the possibility of negative interest rates. Adding to this, a softer risk tone benefitted the US dollar’s safe-haven status and exerted some additional pressure on the GBP/USD pair. Despite the negative factors, the pair managed to find some support near the 1.2185 region and edged higher in reaction to better-than-anticipated UK PMI prints for May. In fact, the flash version of the UK Manufacturing PMI came in at 40.6 as compared to 36 expected. The gauge for the services sector also surpassed expectations and rose to 27.8 from 13.4 previous. Meanwhile, the uptick lacked any strong follow-through and did little to assist the pair to register any meaningful recovery amid concerns over a further escalation in the US-China disputes. In the latest US-China flashpoints, the US Senate passed a bill that could block some Chinese companies from selling shares on the American stock exchanges. Moving ahead, market participants now look forward to the US economic docket – featuring the release of Philly Fed Manufacturing Index, Initial Weekly Jobless Claims and Flash Manufacturing PMI. The data might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North American session. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CAD: Shorts An Attractive Recovery Bet; EUR/USD: Cautiously Upbeat On S/T Upside – Danske Kenny Fisher 2 years Firming expectations for negative BoE rates exerted some pressure on GBP/USD. Reviving safe-haven demand underpinned the USD and added to the selling bias. Better-than-expected flash UK PMI prints extended some support to the sterling. The GBP/USD pair maintained its offered tone through the early European session, albeit recovered around 25-30 pips following the release of UK PMIs. The pair witnessed some follow-through selling for the second straight session on Thursday and extended the overnight pullback from the vicinity of the 1.2300 mark. The mentioned level coincides with 100-day SMA, which has been acting as a key hurdle over the past… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.