GBP/USD offered at 1.2650, drops to test 1.26 ahead of PMI

The GBP/USD pair stalled its overnight recovery at the mid-point of 1.26 handle, sending the rate sharply lower in a bid to retest the last amid fresh buying seen in the US dollar against its main competitors.

GBP/USD awaits UK PMI

The cable trims gains in the European session on the back of resurgent USD demand amid a recovery, as the treasury yields turn positive ahead of the US NFP report.

Moreover, a renewed bout of risk-aversion gripped Europe and weighed on the risk currencies such as GBP, while the European equities tumble -0.90% to -1.30% amid Italian referendum-induced jitters.

Also, expectations of a weaker UK construction PMI report dents the sentiment around the major, as investors moved past renewed Soft-Brexit hopes-led optimism.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2649/50 (daily high/ psychological levels), 1.2675 (Nov 11 high) and 1.2696 (Dec 1 high). While supports are seen at 1.2596 (daily pivot) and 1.2525 (5-DMA) and below that at 1.2490/80 (10 & 20-DMA).