GBP/USD extends recovery towards 1.2750 ahead of PMI

The GBP/USD pair finally took on the recovery from the Italian-referendum-led slide beyond 1.27 handle amid a broad recovery in risk appetite and fresh USD selling.

GBP/USD back towards 1.2750

Markets are seeking to take profits off the table after the extensive slide seen in the cable, following a negative outcome of Italy’s referendum on the constitutional overhaul, as attention now turns towards the UK services PMI report and commencement of the UK Supreme Court deliberations on Brexit today.

Moreover, a sudden risk-on wave gripped markets, as the European equities turned positive and eased the Italian No vote-led market nervousness, eventually underpinned demand for the risk currency GBP.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2747 (2-month top), 1.2772 (Oct 5 high) and 1.2800 (round number). While supports are seen at 1.2646/33 (5-DMA/ daily S1) and 1.2600 (round figure) and below that at 1.2550 (10-DMA).