GBP/USD approaches 1.2300 on upbeat PMI

The buying interest remains intact around the Sterling on Tuesday, with GBP/USD now hovering over the 1.2300 handle following the PMI release.

GBP/USD stronger post-PMI

Spot saw its upside renewed after UK’s manufacturing PMI tracked by Markit has surprised to the upside in December, coming in at 56.1, the highest level in 30-months.

The pair has thus rebounded from earlier lows in the mid-1.2200s following a continuation of the strong demand for the greenback although gains appear so far limited by the area just above 1.2300 the figure.

On the positioning side, GBP net shorts have been trimmed to the lowest level since early July during the week ended on December 27 according to the latest CFTC report, which can somewhat help Cable to limit the downside.

In the US data space, Markit’s Manufacturing PMI is due later in the NA session, preceding the more significant ISM Manufacturing.

GBP/USD levels to consider

As of writing the pair is losing 0.02% at 1.2273 facing the next support at 1.2248 (low Jan.3) ahead of 1.2112 (low Oct.28) and then 1.2081 (low Oct.25). On the upside, a break above 1.2389 (high Dec.30) would open the door to 1.2415 (55-day sma) and finally 1.2648 (100-day sma).