GBP/USD retakes 1.2300 on upbeat PMI

GBP/USD has managed to rebound from session lows in the 1.2275/70 band after the release of Markit’s Services PMI in the UK, regaining the 1.2300 handle.

GBP/USD bid on UK data

Spot found fresh buyers after UK’s Services PMI has surpassed estimates for the month of December, advancing to 56.2 vs. 54.2 initially forecasted.

The pair trimmed earlier losses in the wake of the release, leaving behind the negative territory while the demand for the US dollar continues to gather traction.

The greenback in the meantime is showing signs of recovery after yesterday’s FOMC minutes failed to support the USD-rally, as the Committee noted the ‘considerable uncertainty’ surrounding the effects on the economy of the potential fiscal stimulus under the upcoming Trump’s presidency.

Later in the US docket, the ADP report is due (170K exp.) followed by the ISM Non-manufacturing (56.6 exp.).

GBP/USD levels to consider

As of writing the pair is advancing 0.01% at 1.2322 and a break above 1.2389 (high Dec.30) would aim for 1.2415 (55-day sma) and then 1.2369 (100-day sma). On the other hand, the immediate support aligns at 1.2198 (low Jan.3) ahead of 1.2112 (low Oct.28) and then 1.2081 (low Oct.25).