GBP/USD off lows near 1.2370 post-UK PMI

The British Pound has managed to leave behind the area of daily lows around 1.2350 vs. the greenback on Wednesday, with GBP/USD now attempting to retake 1.2370 and above.

GBP/USD muted on data

Spot kept the composure after today’s results from the UK docket, with BoE’s Consumer Credit rose more than £1.41 billion during January and Mortgage Approvals increased by nearly 70K during the same period.

In addition, M4 Money Supply has expanded at an annualized 7.0% and Net Lending to Individuals rose to £4.8 billion on a monthly basis. On the less bright side, Markit's Manufacturing PMI dropped to 54.6 in February, missing estimates.

Despite the results have come in on the firm side, the impact on GBP has diluted within the broader context of USD-strength.

Absent further publications in the UK calendar, the focus will now shift to the US docket, with ISM Manufacturing, Personal Income/Spending, January’s inflation gauged by the PCE, Markit’s Manufacturing PMI and the speech by Dallas Fed R.Kaplan (voter, hawkish) all preceding the release of the Fed’s Beige Book.

GBP/USD levels to consider

As of writing the pair is losing 0.08% at 1.2370 and a break below 1.2351 (low Mar.1) would aim for 1.2344 (low Feb.7) and finally 1.2250 (low Jan.19). On the flip side, the initial up barrier aligns at 1.2410 (100-day sma) followed by 1.2474 (20-day sma) and then 1.2572 (high Feb.24).