GBP/USD: Recovery stalls near 1.4650 post-PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The minor-recovery seen in the GBP/USD pair seen over the last hours lost steam near 1.4650 region following the release of dismal services PMI reading from the UK.

    GBP/USD keeps losses on weak services PMI

    The GBP/USD pair trades -0.22% at lower 1.4638, hovering close to fresh multi-month lows struck at 1.4620 in the last hours. The cable came under renewed selling pressure after the services sector activity in the UK slowed more than expected in Dec and suggests a muted Q4 GDP reading, likely to stand at 0.5% q/q versus 0.5% seen in Q3.

    Moreover, the traders prefer to hold the US currency on the back of interest rate differentials, with a batch of significant macro updates likely on the cards later in the NY session. While the FOMC minutes is expected to remain the key event.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4700/04 (round number/ 5-DMA), above which 1.4747/69 (1h 100-SMA/ 10-DMA) would be tested. On the flip side, support is seen at 1.4600 (round number) below which it could extend losses to 1.4563 (April 2015 Low).
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