GBP/USD slips back to 1.3000 ahead of PMI

The better tone around the greenback at the beginning of the week is promoting GBP/USD to recede from recent tops in the 1.3020/30 band to the current area around 1.3000 the figure.

GBP/USD attention to PMI

Cable’s rally seems to have found a tough resistance beyond the psychological 1.3000 handle for the time being. In fact, the pair is now reverting an 8-session positive streak from multi-week lows in sub-1.2600 levels (June 21) to Friday’s peaks around 1.3020.

The British Pound has also found extra motives for climbing higher following the fresh hawkish stance from the BoE, with Governor Mark Carney recently suggesting that the central bank could removed some of the current stimulus. Carney is also due to speak later today as well as BoE’s Chief Economist A.Haldane.

From the positioning perspective, GBP speculative net shorts have ticked higher to 2-week tops during the week ended on June 27, according to the latest CFTC report.

Data wise today, UK’s manufacturing PMI for the month of June will be the salient point. In the US docket, the ISM manufacturing is due along with the speech by St. Louis Fed J.Bullard (2019 voter, centrist).

GBP/USD levels to consider

As of writing the pair is retreating 0.25% at 1.2995 facing the next support at 1.2866 (55-day sma) followed by 1.2814 (21-day sma) and finally 1.2587 (low Jun.21). On the upside, a breakout of 1.3032 (high Jun.30) would open the door to 1.3051 (2017 high May 18) and then 1.3125 (high Sep.22 2016).

Favouring some correction in the near term, the daily RSI (14) has returned to levels around 62 while the MACD may be suggesting some exhaustion of the bull run. In the near term, the bullish stance appears reinforced by the support line off March’s lows near the 1.2100 handle, today at 1.2638.