GBP/USD: Bears target Jan-end lows, UK PMI eyed

The tepid-recovery in GBP/USD from six-week lows faltered, with the major coming under fresh selling pressure as the greenback reverts towards seven-week tops versus its main competitors reached yesterday.

The renewed weakness in the spot can be largely attributed to fresh buying interest seen around the greenback after the 2-year treasury yields pick-up pace on Fed member Brainard’s hawkish comments on rate hikes.

The GBP traders remain on the back foot after the House of Lords amended Brexit bill to protect EU nationals already in Britain, which raised concerns whether the same guarantee will be provided from the EU to the British nationals, who already work in the Euro area.

Later today, the major will get influenced by the USD dynamics as Trump trade extends amid rising March rate hike bets. On the data-front, the UK construction PMI data will fill up an otherwise light UK calendar, while the US docket has the weekly jobless claims release.

GBP/USD Levels to consider            

At 1.2277, the supports are lined up at 1.2250 (Jan-end lows) and 1.2200 (round figure) and below that at 1.2148 (Jan 12 low). On the flip side, the resistances are aligned at 1.2300 (zero figure) and 1.2360 (5-DMA) and below that at 1.2375 (daily R1).