GBP/USD around 1.2250 post-PMI

The British pound keeps the firm note on Tuesday, with GBP/USD hovering over 1.2250 after climbing as highs as 1.2280 in early trade.

GBP/USD gains capped near 1.2280

The pair has given away some pips after UK’s Manufacturing PMI tracked by Markit has come in a tad below estimates at 54.3 for the month of October, retreating as well from September’s 55.4.

In the meantime, the upside momentum in GBP remains underpinned by the selling pressure around the greenback and the recent decision by M.Carney to remain the Governor of the Bank of England until June 2019.

It is worth mentioning that GBP speculative net shorts remained at record levels during the week ended on October 25, although they have been trimmed to 5-week lows. Furthermore, open Interest has climbed to the highest level since mid-March.

GBP/USD levels to consider

As of writing the pair is up 0.03% at 1.2243 and a breakdown of 1.2251 (high Oct.31) would aim for 1.2327 (high Oct.18) and finally 1.2377 (high Oct.11). On the other hand, the immediate support aligns at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7).