- GBP/USD extended overnight pullback from the very important 200-day SMA.
- The intraday slide seemed rather unaffected by a subdued USD price action.
- The USD remained depressed following the release of ISM Manufacturing PMI.
The GBP/USD pair maintained its bearish tone and held near the lower end of its daily trading range, around the 1.2520 region post-US macro data.
The pair came under some fresh selling pressure on the last trading day of the week and eroded a major part of the previous day’s strong intraday positive move of around 200 pips, to over two-week tops.
This comes on the back of the overnight late pullback from the very important 200-day SMA and hence, could be solely attributed to some technical selling amid a subdued price action around the US dollar.
The greenback extended its sideways consolidative move through the early North-American session and struggled to gain any meaningful traction despite better-than-expected ISM Manufacturing PMI print.
The gauge plunged to 41.5 for April, from 49.1 previous, mostly on the back of coronavirus-induced lockdowns, albeit came in much higher than consensus estimates pointing to a reading of 36.9.
Additional details showed that the Employment Index slumped to 27.5 from 43.8 and the New Orders Index plunged to 27.1, which failed to impress the USD bulls or provide any meaningful impetus.
Despite the pullback, the pair showed some resilience near the key 1.2500 psychological mark, which should now act as a key pivotal point and help determine the next leg of a directional move.
Hence, it will be prudent to wait for some follow-through selling before confirming that the pair might have topped out already and positioning for any further near-term depreciating move.
Technical levels to watch