GBP/USD through 1.2600 post-PMI, daily highs

The British Pound has extended the upside above the 1.2600 handle vs. the greenback in the wake of January’s PMI print, with GBP/USD now testing fresh highs mear 1.2620.

GBP/USD struggles for direction near 1.2600

The pair has trimmed earlier losses although it remains unable to extend the recent bullish attempt further north of the 1.2600 handle on a more sustainable fashion during the first half of the week.

In addition, GBP found some support after UK’s Manufacturing PMI matched expectations in January, coming in at 55.9 vs. December’s 56.1.

Spot remains sidelined in the upper bound of the recent range amidst some tepid recovery in the greenback, while market participants staying vigilant on the upcoming US docket.

USD will take centre stage later in the session in light of the employment report by ADP, the ISM Manufacturing and the FOMC meeting.

GBP/USD levels to consider

As of writing the pair is up 0.27% at 1.2616 and a break above 1.2680 (high Jan.26) would expose 1.2729 (high Dec.13). On the downside, the next support is located at 1.2478 (100-day sma) followed by 1.2410 (low Jan.31) and finally 1.2375 (20-day sma).