- Cable is lacking strong bull/bear bias since March 29.
- UK services PMI could set the tone for the next move in the British Pound.
The GBP/USD pair dropped for three straight sessions in the run-up to the Easter holidays, but since then has been trading largely in a sideways manner in the range of 1.40 to 1.41.
Eyes UK services PMI
The data, due at 08:30 GMT today is expected to show the pace of expansion in the activity cooled somewhat to 54.00 index points in March from the February figure of 54.5 index points.
The UK March manufacturing PMI released earlier this week bettered estimates. So, the services aiding the manufacturing activity may have received a boost as well. However, construction activity registered the biggest drop since just after the brexit referendum vote and that may act as a drag on the services PMI.
That said, a big beat on the services PMI could set the tone for a rally to a recent high of 1.4245 (March 26 high). On the other hand, a big miss on the expectations could yield a break below 1.40.
Also, sterling traders would take cues from the action in the stock markets. It is worth noting that Sterling ranks last on the list of anti-risk currencies.
GBP/USD Technical Levels
A clear break above 1.41 (psychological level) would allow a stronger rally to 1.4245 (March 26 high). A close higher would signal a revival of the bull run and open doors for 1.4345 (Jan. 26 high). On the downside, a close under 1.40 (psychological mark) could yield a deeper pullback to 1.3765 (Feb. 9 low) and 1.3712 (March 1 low).
Be the first to comment