GBP/USD - Offered above 50-DMA, clocks fresh 3-week low

GBP/USD ran into fresh offers above the 50-DMA level seen at 1.2397 and dropped to 1.2363; the lowest since February 7.

Eyes UK manufacturing PMI

The UK manufacturing PMI for February is expected to print at 55.5, which is largely unchanged from the January figure of 55.9.

The CBI data released earlier this week Demand for UK-manufactured goods strengthened in the three months to February with order books at two-year high. The weaker Pound is seen fuelling the rise in the input costs.

The data was released on February 20 and the British Pound had responded positively. Hence, Cable could strengthen today only if the actual number prints way above the estimate of 55.5.

On the other hand, a weaker-than-expected number could strengthen the offered tone around GBP.

GBP/USD Technical Levels

The spot was last seen trading around 1.2366. A breakdown of support at 1.2346 (Feb 7 low) would open up downside towards 1.24 (zero figure). A violation there could yield sell-off to 1.2260 (Jan 20 low). 

On the other hand, a lift above 1.2405 (100-DMA) would expose 1.2442 (5-DMA), above which a major hurdle is seen at 1.25 (zero figure).