GBP/USD losses momentum, near 1.2510

The British Pound has surrendered some pips following the release of UK’s manufacturing PMI, with GBP/USD returning to the 1.2510 area.

GBP/USD still bid despite data

The buying pressure around the pair entered into a pause-mode after UK’s Manufacturing PMI has surprised markets to the downside today, coming in at 54.3 for the month of November, missing estimates and falling from October’s 54.2.

In spite of the correction lower from highs in the key band at 1.2550/55, spot keeps its bid tone intact against the backdrop of a broad-based USD weakness.

Furthermore, GBP continues to show a high degree of resilience despite the medium and longer terms continue to point to a higher demand for the greenback.

This perspective remains backed by prospects of stronger link trades between the US and the UK following comments by president-elect D.Trump, while UK fundamentals so far showed a better performance than initially estimated considering the Brexit vote.

Adding to the above, extreme speculative positioning has also prompted a rebound in the pair, although the broader sentiment still remains on the short side.

GBP/USD levels to consider

As of writing the pair is gaining 0.06% at 1.2513 facing the next hurdle at 1.2675 (high Nov.11) followed by 1.2809 (100-day sma). On the flip side, a break below 1.2462 (20-day sma) would open the door to 1.2384 (low Nov.29) and then 1.2297 (low Nov.18).