GBP/USD attempts tepid-bounce towards 1.2350

The pound appears to have embarked upon a minor-recovery mode against its American counterpart in late-Asia/ early Europe, lifting GBP/USD from near 1.2315 region.

GBP/USD back to test 20-DMA at 1.2343

The cable is seen regaining lost ground as the bears are back in action around the buck, in wake of ongoing weakness surrounding the treasury yields, after the FOMC minutes suggested that the policymakers see risks to three rate hikes in 2017 in case the Trump’s presidency fails to deliver on the proposed fiscal spending and US growth revival promises.

While the major continues to find support from better-than expected UK manufacturing and construction PMI readings published earlier this week. However, the recovery in the GBP/USD pair could be short-lived amid impending Brexit-process concerns, especially after headlines from S&P noting that the likelihood of a Hard Brexit is increasing.

The immediate focus now shifts towards the UK services PMI data due to be reported ahead of the US ADP jobs and services PMI reports lined up for release in the NA session.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2356 (previous high), 1.2379 (daily R1) and 1.2400 (zero figure). While supports are seen at 1.2303 (5-DMA) and 1.2267 (Dec 2 low) and below that at 1.2240 (daily S1).