GBP/USD balanced around 1.3300 handle ahead of US PMI data

After seesawing between positive and negative territories, the GBP/USD pair has now flattened out around yesterday's closing level and is currently trading around 1.3300 handle ahead of the US ISM manufacturing PMI data.

Earlier during the day, the pair dropped to 1.3250 weighed down by Thursday's dovish comment by BOE Governor Mark Carney that clearly pointed to a potential rate-cut this summer. The pair, however, managed to recover from session low level and jumped to 1.3350 following the release of surprisingly strong UK manufacturing PMI data. 

The Markit UK manufacturing PMI jumped to 52.1 in June and touched a five-month high level. The pair, however, lost its upside momentum and is weighed down by expectations of monetary easing by the Bank of England. 

PMI data will remain in focus during early US trading session with attention now turning to the US ISM manufacturing PMI data, which is expected match May's reading and could provide some momentum for short-term traders.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "In the short term, the  4 hours chart presents a neutral-to-bearish stance, as the price is now developing below a flat 20 SMA, whilst the Momentum indicator is now flat around the 100 level, and the RSI indicator consolidates around 39, both lacking clear directional strength. Below 1.3260, the pair is set to retest the 1.3200 level, ahead of 1.3150. A recovery above the mentioned 20 SMA, now around 1.3370, is required now to support additional gains towards  1.4220 and 1.4250."