GBP/USD bounces-back to 1.2300, UK PMI in focus

The pound brought an end to its declines and took on a minor-recovery mode in Asia, sending GBP/USD higher to test 1.23 handle.

GBP/USD near 5-DMA at 1.2305

The cable caught a fresh bid-wave this Tuesday, as sentiment remains favorable towards risk currencies such as the GBP, with full markets returning to trade after a holiday-break and cheering upbeat Chinese Caixin manufacturing PMI report and higher commodities’ prices.

Markets ignored broad based US dollar strength, as all eyes now remain focused on the upcoming UK manufacturing PMI and US ISM manufacturing reports lined up for release later today for near-term direction on the spot.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2331 (daily R1), 1.2380/89 (20-DMA/ weekly high) and 1.2400 (round figure). While supports are seen at 1.2275 (daily low) and 1.2242 (Dec 30 low) and below that at 1.2200 (zero figure).