GBP/USD: UK PMI-backed rally falters at 5-DMA

The bulls were rescued by surprising positive UK manufacturing PMI report, sending GBP/USD back onto 1.33 handle, however, further upside remains capped by 5-DMA placed at 1.3324.

GBP/USD struggles to extend beyond 1.33 handle

Currently, GBP/USD peeks into the green to trade around 1.3313 levels, having bounced-off a brief dip to 1.3291 over the last hour.  The bulls now try hard to extend control, riding higher on the upbeat UK manufacturing PMI data, which jumped to 52.1 points in June, as compared to a 50.1 reading seen in May. Markets had predicted a 50.0 print.

Moreover, the minor-bounce lacks follow-through as risk sentiment remains under pressure in response to cautious trading activity seen on the European markets, while lower oil prices also weighs on the investors’ risk appetite.

Moving on, the risk remains to the downside for the major as the US dollar is expected to rebound later in the NA session on in-line with expectations US ISM manufacturing PMI report.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3418 (June 28 High), above which 1.3450 (psychological levels) would be tested. On the flip side, support is seen at 1.3262 (Daily low) below that at 1.3207 (Jun 30 low).