GBP/USD back to square one

GBP/USD failed to sustain gains and pulled back after hitting a 12-day high of 1.2280, with the pound weighed by disappointing PMI reading.

UK Markit manufacturing PMI for October fell to 54.3 from a previously revised 55.5, and below expectations of 54.5.

GBP/USD retreated to a low of 1.2205 but found support and is back at square one at the beginning of the New York session, trading around 1.2230.

Later in the day, US PMIs (ISM and Markit) will be released while investors focus on Fed’s decision on Wednesday’s and BoE’s on Thursday.

GBP/USD levels to watch

As for technical levels, immediate supports are seen at 1.2142 (Oct 31 low), 1.2113 (Oct 28 low) and 1.2081 (Oct 25 low). On the other hand, resistances could be found at 1.2280 (Nov 1 high), 1.2302 (21-day SMA) and 1.2330 (Oct 19 high).