GBP/USD deflates from 1.3270, despite risk-on

The GBP/USD pair stalled its recovery from 1.3200 levels near 1.3270 region, now pushing the prices back towards the mid-point of 1.32 handle.

GBP/USD: Heads towards 5-DMA at 1.3218?

Currently, GBP/USD rises +0.17% to 1.3251, retreating from session highs posted at 1.3272. The cable reverses a part of early gains as risk-on moods lifted by upbeat China PMI appear to have cooled-off a bit, while a fresh bout of buying interest seen in the US dollar also dragged the GBP/USD pair lower.

Attention now turns towards the UK manufacturing PMI report due later in the European session for further impetus on the pound. While the US ISM manufacturing data will be also closely eyed for fresh cues on the USD moves, especially after a weak GDP report.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3272/76 (daily top/ R3), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3218 (5-DMA) below that at 1.3183/75 (10 & 20-DMA).