The GBP/USD pair attracted some dip-buying near the 1.2170 area on Thursday. It also recovered around 80-85 pips from the vicinity of the weekly low touched the previous day.
The pair was seen trading just above mid-1.2200s during the early North American session, nearly unchanged for the day.
The GBP drew support from better-than-expected UK PMI prints for June and some cross-driven strength. This is as a result of the dismal Eurozone PMIs-led turnaround in the EUR/GBP cross.
This is seen as a key factor that offered some support to the GBP/USD pair, though a combination of factors might hold back bulls from placing aggressive bets.
Meanwhile, the USD was back in demand amid firming expectations that the Fed hike interest rates at a faster pace to combat stubbornly high inflation. In fact, the markets have been pricing in another 75 bps rate hike move at the upcoming FOMC meeting in July.
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