GBP/USD trims losses post-UK PMI, near 1.2880

Higher-than-expected manufacturing PMI print in the UK prompted GBP/USD to recover further ground towards 1.2880.

GBP/USD bid after data

Cable met fresh buyers after UK’s manufacturing PMI surprised to the upside in May, up to 57.3 vs. expectations at 56.5 and a tad lower than March’s 57.3.

The auspicious release helped spot to extend the rebound further from daily lows in the 1.2845/40 band seen during overnight trade.

Later in the session, the pair should remain under pressure in light of the releases in the US docket: the ADP report, the ISM Manufacturing and the speech by FOMC’s J.Powell (permanent voter, centrist).

GBP/USD levels to consider

As of writing the pair is losing 0.09% at 1.2878 facing the immediate support at 1.2770 (low May 31) followed by 1.2758 (low Apr.21) and then 1.2729 (55-day sma). On the flip side, a breakout of 1.2921 (high May 31) would aim for 1.2922 (20-day and finally 1.2949 (high May 26).