​​​​​​​GBP/USD treads water below 1.2700 as the Dollar trims losses

• Pound bulls fail to extend beyond 1.2670.
• UK Manufacturing PMI beats expectations in November.
• The US Dollar ticks up with all eyes on Fed Powell.

Sterling’s rebound seen after the better-than-expected manufacturing data has been short-lived. Bulls have been capped at 1.2675, which leaves the pair in no man’s land with the near-term upside trend losing steam.

UK manufacturing data fails to boost the Pound

UK S&P  Global/CIPS Manufacturing PMI improved to 47.2 in November, from 46.7 in October, beyond expectations of a 46.6 reading. Earlier today Nationwide revealed that housing prices increased against expectations in November.

On the other hand, the US Dollar has ticked up from session lows, with te marke bracing for a slew of Fed speakers later today with a special interest on Fed Chairman, Jerome Powell. This is weighing on GBP bulls.

From a technical perspective, the near term remains positive yet price action shows hesitation below 1.2700. The “Evening star” candle pattern in the daily chart suggests the possibility of a downside correction.

Immediate resistance is at 1.2627 ahead of November’s high, at 1.2730. On the downside, supports are 1.2590 and 1.2410.

Technical levels to watch