Markit’s manufacturing purchasing managers’ index jumped to the highest level in two and a half years at 56.1 points, far better than 53.3 expected and 53.4 seen back in November.
GBP/SUSD, which was on the fall towards the release, is rebounding. Cable is currently trading at 1.2283, up from a low of 1.2246 seen earlier. However, this is a rebound to some front-running. GBP/USD tends to move ahead of economic publications. Sometimes this is due to a leak while in other cases, rumors or expectations are pushing the currency.
In this case, we have seen expectations for a poor number. Combined with some USD strength, GBP/USD dropped, but when the excellent number hit the screens, we see a rebound.
Resistance awaits at 1.23, followed by 1.2380. Support is only at 1.2170.
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