GBP/USD turns neutral ahead of UK manufacturing PMI

The GBP/USD pair has managed to reverse early dip below 1.2550 level and turned to neutral territory ahead of UK manufacturing PMI.

The pair on Tuesday witnessed a sharp reversal from 50-day SMA support near 1.2415 region and surged to 1.2600 neighborhood in wake of comments from the US President Donald Trump and the head of his National Trade Council, Peter Navarro. 

On Wednesday, the pair reversed part of yesterday's strong gains amid modest US Dollar recovery. The retracement, however, turned out to be short-lived as traders continue to readjust their positions ahead of today's important economic releases / events from UK and the US. 

Wednesday's UK economic docket features the release of manufacturing PMI for the month of January, while from the US the release of ADP report and ISM manufacturing PMI would be in focus during early NA session. Later during the day, the Fed is scheduled to announce its monetary policy decision ahead of BoE's super Thursday. 

Technical levels to watch

Currently trading around 1.2575-80 band, immediate resistance is pegged near 1.2600 round figure mark above which the pair is likely to head towards 1.2630 resistance ahead of multi-week highs resistance near 1.2670-75 region. On the downside, weakness below session low support near 1.2550-40 region is likely to drag the pair back towards 100-day SMA support near 1.2500 psychological mark, which if broken would turn the pair vulnerable to break below yesterday’s swing low support near 1.2415-10 region (50-day SMA).