GBP/USD sees downside consolidation around hourly 100-SMA

The GBP/USD pair stalled its retreat from two-month tops near the mid-point of 1.26 handle, with the bears now taking a breather heading into the UK manufacturing production report.

The cable is seen moving back and forth in a tight range, after having faced strong offers near 1.2685 region in early trades, as sentiment towards the riskier assets remains sour amid negative oil prices and mixed Asian equities.

Moreover, markets resort to profit-taking after the recent strength ahead of the key macro news from the UK docket – industrial and manufacturing production data due on the cards later today.  Markets are predicting the indicator to drop to 0.2%.

Later in the NA session, we have the US JOLTS Job openings data and EIA crude stockpiles report, which could provide fresh incentives on the spot.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2700 (round figure), 1.2720 (100-DMA) and 1.2776 (2-month top). While supports are seen at 1.2651 (Daily low) and 1.2623 (previous low) and below that at 1.2595 (10-DMA).