One of the challenging tasks in Personal Communication Services (PCS) is to efficiently maintain the location of PCS subscribers who move from one region to another (hereafter called mobile users). When a mobile user receives a call, the network has to quickly determine its current location. The existing location management scheme suffers from high signaling traffic in locating the mobile users. Two-level forwarding pointer scheme has been proposed from per-user forwarding pointer scheme to reduce the cost of signaling traffic. In this paper, we enhance the two-level forwarding pointer scheme. When a mobile user moves from its current Registered Area (RA), which is served by Mobile Switching Center (MSC), to another RA the local switch that acts as a parent of those two MSCs maintains this movement in its memory (hereafter called cache entry). A cache entry is used to locate rapidly the mobile user instead of querying the Home Location Register (HLR) and waiting for its reply. HLR is centralized in the network and far away from the mobile users so that the signaling traffic crossing it is expensive. Sometimes the cache entry may be failed to reach the mobile user then a two-level forwarding pointers will be created from the corresponding Visitor Location Register (VLR), attached to its MSC, through a correct path to locate the mobile user. Thus, there is a saving in cost of querying the underlying HLR. The analytical results indicate that such proposal efficiently reduces the signaling traffic cost for all values of Call to Mobility Ratio (CMR), this is especially considerable when CMR ≥1, without any increase in the call setup delay.