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).
