GBPUSD battles 1.3540-35 key support ahead of UK PMIs

GBPUSD keeps pullback from 200-DMA and 78.6% Fibonacci retracement (Fibo.) of September-December 2021 downside around a short-term crucial support convergence near 1.3540-35, including 100-DMA and 50% Fibo with eyes on monthly UK PMI data. That said, recently upbeat UK economics renews BOE rate hike concerns, which in turn could trigger the pair’s bounce from the stated support should today’s activity numbers arrive higher. The same could trigger recovery moves towards the 61.8% Fibonacci retracement level of 1.3630. However, the pair’s further advances will be challenged by the 200-DMA and 78.6% Fibo. level, respectively around 1.3730 and 1.3750.

On the contrary, a downside break of 1.3535 will reassess the data and also need validation from the mid-November peak of 1.3513 before directing GBPUSD bears to the 50-DMA level of 1.3416. Should the cable pair sellers dominate past 1.3416, odds of witnessing further declines towards 23.6% Fibonacci retracement of 1.3335 can’t be ruled out.