GBP/USD: Bears guarding 1.2750 barrier, UK PMI ignored

With above estimates UK services PMI print adding to the recent streak of strong UK fundamentals, the GBP/USD pair extended its rebound from multi-decade lows, although failed once again near 1.2750, as markets digest latest comments from BOE’s Broadbent.

GBP/USD: Downside risks persist

The cable continues to keep its bearish bias intact, despite a quick rebound seen from multi-decade lows of 1.2686, as it has already breached the key 1.2700 support.

The recovery lost steam just below 1.2750, as the bears guard the last, despite better-than expected UK services PMI data, which marks a hat-trick in terms of auspicious UK economic releases. At the time of writing, GBP/USD trades -0.05% lower at 1.2720, still managing to stay above 1.27 handle.

The GBP/USD pair stalled its recovery attempt as markets turn cautious, with BOE deputy governor Broadbent’s speech underway. The BOE policy maker spoke on the monetary policy outlook, noting that Article 50 trigger date has no impact BOE policy.

Markets now await the US ADP jobs report for fresh moves in the major. While the key determining event for the major this week remains the US payrolls data due Friday.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.2800 (key support-turned resistance), above which at 1.2850 (psychological levels) and next at 1.2900 (round number). The next key support is seen at 1.2686 (3-decade lows).