GBP/USD finds bids once again near 1.2260, PMI eyed

The GBP/USD pair is seen reverting to daily tops near 1.2280 region, after the bulls found support once again near 1.2260 region.

GBP/USD trades below all major DMAs

The spot stalled its minor-recovery as the bears fought back control amid moderate risk-aversion, with the Asian indices tracking their Wall Street counterparts lower.

However, the downside appears limited in response to a minor correction seen in US 2-year treasury yields (reflects rate hike expectations), after an extensive rally to almost seven-year highs. The shorter-duration yields surged a day before in wake of increasing odds for a March Fed rate hike. 

In the day ahead, the USD dynamics will continue to play a major role ahead of a bunch of FOMC speakers lined up in the NA session. On the data front, the services PMI reports from both the UK and US will also hog the limelight.

GBP/USD Levels to consider            

At 1.2273, the supports are lined up at 1.2243 (monthly lows) and 1.2200 (round figure) and below that at 1.2148 (Jan 12 low). On the flip side, the resistances are aligned at 1.2300 (zero figure) and 1.2330/40 (5-DMA/ classic R2) and below that at 1.2372 (classic R3).