GBP/USD Corrects Higher Above 1.4500 Ahead of UK PMI
The bears appear to face exhaustion after the recent extensive declines, allowing GBP/USD to stage a minor corrective rally above 1.45 handle, as focus now remains on the UK services PMI.
GBP/USD retraces from one-week low
The GBP/USD pair trades 0.14% higher at 1.4517, having posted day’s high at 1.4522 and day’s low at 1.4494. The cable nursed recent downbeat PMI induced wounds and now regains bids as the traders lock-in gains on their GBP shorts ahead of yet another PMI release, this time the services sector report from the UK economy.
The services PMI index improved in March to 53.7 points, close to the forecast. Little change is expected in the April report, with an estimate of 53.6 points.
The minor-relief rally seen in the GBP/USD pair can be also attributed to the rebound in the oil prices after unfavourable developments in Canada and Libya stoked fears over supply disruption. Both crude benchmarks moved-off highs, although remain almost 1.50% higher.
The UK services PMI index remains next in focus for the major, ahead of the US datasets lined up for release later in the NA session.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4564/66/1.4600 (daily R1/ 5-DMA), above which 1.4594/1.4600 (1h 100-SMA/ round number) would be tested. On the flip side, support is seen at 1.4462 (May 4 low) below that at 1.4433/00 (20-DMA/ Apr 25 low).