GBP/USD consolidates the vertical rise ahead of UK PMI

The cable extends its overnight side-trend into Asia this Wednesday, as the bulls take a breather and consolidate yesterday’s extensive rally triggered by massive USD selling across the board.

The greenback was sold-off into poor US consumer confidence and Chicago PMI data, while Trump’s lamenting on the USD strength, further fuelling the sell-off.

The GBP/USD pair now attempts a minor-correction as the US dollar recovers some ground versus its major peers, in response to a solid pullback in the treasury yields, with markets gearing up for the FOMC decision and fresh policy moves by Trump.

The immediate now focus now remains on the UK manufacturing PMI release, which will be followed by the US ADP jobs report and ISM manufacturing PMI gauge.

GBP/USD Levels to consider            

At 1.2571, the upside barriers are lined up at 1.2592 (daily high), 1.2643 (Jan 25 high) and 1.2680 (Jan 28 high). While supports are aligned at 1.2557 (5-DMA) and 1.2529 (daily pivot) and below that at 1.2500 (zero figure).