Valeria Bednarik, Chief Analyst at FXStreet, notes that today’s expectedly strong UK Markit Services PMI might support GBP/USD, expecting a break above the immediate resistance at 1.5220 to lead the pair higher towards 1.5250 levels.
Key Quotes
“Pound found support in quite positive PMI readings this week, with manufacturing and construction readings beating expectations, diminishing the fears of an economic slowdown in the kingdom, as a consequence of European woes”
“For today, the UK Services PMI is expected to have ticked higher in January up to 56.3 from a previous 55.8, something that may gave further support to the Cable.”
“Technically, the 4 hours chart shows that the price consolidating well above a mild bullish 20 SMA, whilst indicators lost their upward potential, now flat in positive territory. The 200 EMA in the same chart, offers resistance around 1.5250 with the pair having been trading below it since July 2014.”
“There's also an intermediate resistance in last week highs around the 1.5220 price zone, which means a break above this levels should see a quick spike up to the mentioned 200 EMA.”
“Short term, the immediate support stands at the daily low of 1.5138 with a price acceleration below it opening doors for a slide down to 1.5100 first and 1.5060 then.”
Key Quotes
“Pound found support in quite positive PMI readings this week, with manufacturing and construction readings beating expectations, diminishing the fears of an economic slowdown in the kingdom, as a consequence of European woes”
“For today, the UK Services PMI is expected to have ticked higher in January up to 56.3 from a previous 55.8, something that may gave further support to the Cable.”
“Technically, the 4 hours chart shows that the price consolidating well above a mild bullish 20 SMA, whilst indicators lost their upward potential, now flat in positive territory. The 200 EMA in the same chart, offers resistance around 1.5250 with the pair having been trading below it since July 2014.”
“There's also an intermediate resistance in last week highs around the 1.5220 price zone, which means a break above this levels should see a quick spike up to the mentioned 200 EMA.”
“Short term, the immediate support stands at the daily low of 1.5138 with a price acceleration below it opening doors for a slide down to 1.5100 first and 1.5060 then.”
