GBP/USD eases back as markets tiptoe through the midweek

• GBP/USD gave back a fifth of a percent on Wednesday.
• It's a slim schedule on the data docket for Thursday.
• Investors are awaiting Friday's PMI double-header from both the UK and the US.

GBP/USD softened on Wednesday, easing back around one-fifth of one percent as markets await a decisive trigger to tilt risk appetite one way or another. Markets are hunkering down during a slow midweek gap between key data releases, and Purchasing Managers Index (PMI) figures are the light at the end of this week's tunnel.

With Thursday slated to be a low-tier release day, Cable traders will be pivoting to focus on Friday's S&P Global PMI figures due on both sides of the Atlantic. Both UK and US PMI business activity survey results for January are expected to come in mixed this week, with the services components expected to tick down and manufacturing to recover, albeit slightly. PMI figures generally have a limited impact unless figures come in wildly out of sync with forecasts, but survey respondent rates tend to be on the low side, and the overall figures should be taken with a grain of salt.

GBP/USD price forecast

GBP/USD has been making a slow, steady recovery after tumbling to 15-month lows near 1.2100 recently, but bulls are struggling to push bids past the 1.2400 handle. Price action has chalked in a firm technical support level near the 1.2200 region, but a descending 50-day Exponential Moving Average (EMA) near 1.2500 is making it difficult for any bullish moves to develop long legs.

GBP/USD daily chart