GBP/USD stalls recovery, reverses sharply to 1.2830

The GBP/USD pair faded a spike to daily highs reached at 1.2890, following the release of upbeat UK manufacturing PMI report, and now dives deeper in the red zone below 1.2850 levels.

GBP/USD offered once again just below 1.29 handle

The major’s recovery attempt once again lost legs near 10-DMA barrier located at 1.2891, triggering a fresh sell-off in GBP/USD amid a broad based US dollar rebound. The greenback slumped across the board on Wednesday amid renewed US political concerns and weak pending home sales data

Moreover, risk-on trades appear to have eased a bit, as treasury yields and oil prices retreated, collaborating to the renewed downslide in the spot. Also, underlying political uncertainty in the UK also continues to keep any recovery in cable limited.

The major now eagerly await the US dataflow for fresh trading impetus. The US ADP jobs, unemployment claims and ISM manufacturing PMI remains on tap later today.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “As for the technical outlook, the GBP/USD pair remains mostly neutral, although the 4 hours chart shows that the price has been holding above its 20 SMA that converges with the 200 EMA around 1.2840, the level to break to see some intraday declines. In the same chart, technical indicators are aiming to bounce from their mid-lines, but at the time being lack directional strength. Below the mentioned level, 1.2800 and 1.2760 are the next supports, while only beyond 1.2920, the pair can gain upward potential and extend its advance up to 1.2960.”