FXStreet (Mumbai) - The GBP/USD pair stalled its 2-day rally and eased in the Asian trades, as the GBP bulls took a breather amid risk-off sentiment while markets now focus on the upcoming UK PMI report.
GBP/USD retreats from near weekly highs
The GBP/USD pair trades flat at 1.5428, failing to break above the weekly highs posted last week above 1.5460 levels. The major gave away gains and trades muted heading into the early European hours as investors remain wary on reducing appetite for risker assets on the back of China PMIs induced risk-aversion.
Official data released over the weekend also showed that China's factory activity shrunk in October for a third straight month. The latest survey from Caixin on Monday showed that China's PMI stood at 48.3 in October, beating forecasts for a reading of 47.6.
While attention now turns towards the crucial UK PMI report due for release later in the session ahead, with markets expecting a weaker reading. The UK manufacturing PMI is seen inching slightly lower to 51.4 from 51.5 seen in September.
Later this week, the main highlight is likely to remain the ‘Super Thursday’ for the major while the highly influential non-farm payrolls from the US will remain in focus for fresh cues on Dec rate hike options.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5444/55 (100-DMA/ Today’s High) above which gains could be extended to 1.5500 (round number). On the flip side, support is seen at 1.5411/00 (1h 20-SMA/ psychological levels) below which it could extend losses to 1.5359 (1h 200-SMA/200-DMA).
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