- Disappointing UK PMI prints for November drags the pair below the 1.2900 handle.
- The near-term technical set-up seems to have shifted in favour of bearish traders.
The GBP/USD pair held on to its weaker tone through the mid-European session on Friday, albeit has managed to rebound around 20 pips from weekly lows and is currently hovering around the 1.2880-85 region.
A sustained break below the 1.2900 round-figure mark, coinciding with 200-hour SMA, was seen as a key trigger for bearish traders following the release of weaker-than-expected flash UK PMI prints for November.
Against the backdrop of the pair’s repeated failure ahead of the key 1.30 psychological mark, acceptance below the mentioned handle now support prospects for a further near-term depreciating move.
Hence, some follow-through weakness, back towards challenging the 1.2800 handle, now looks a distinct possibility, albeit slightly oversold conditions on the hourly chart warrant some caution for bearish traders.
On the flip side, any attempted recovery beyond the 1.2900 support breakpoint might now confront some fresh supply near the 1.2925-30 region, above which the pair is likely to aim back towards the 1.30 handle.
GBP/USD 1-hourly chart
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