GBP/USD corrects lower to 1.2880 ahead of PMI

The British Pound is posting marginal losses ahead of the opening bell in Euroland on Friday, taking GBP/USD to the lower end of the daily range near 1.2880.

GBP/USD focus on PMI, NFP

Cable met fresh sellers after reaching weekly tops beyond 1.2900 the figure on Thursday. The Sterling is on its way to close the week with gains, advancing in four out of the last five session and managing well to extend the bounce off recent lows in the 1.2770 region (Wednesday).

The somewhat better tone around the buck was no impediment for the pair to move higher this week, although another test of the psychological 1.3000 handle still appears elusive.

In the meantime, GBP is poised to fluctuate around election poll results in the very near term, while UK fundamentals, speculative positioning and somewhat mitigated Brexit jitters should act as a fairly decent support.

Looking ahead, UK’s construction PMI for the month of May is only due, while markets’ attention should later shift to the US docket, with non-farm payrolls being the salient event.

GBP/USD levels to consider

As of writing the pair is losing 0.06% at 1.2875 facing the immediate support at 1.2770 (low May 31) followed by 1.2758 (low Apr.21) and then 1.2738 (55-day sma). On the flip side, a breakout of 1.2918 (20-day sma) would aim for 1.2921 (high May 31) and finally 1.2949 (high May 26).