GBP/USD Clings to Gains Near 1.4500

GBP/USD Clings to Gains Near 1.4500

5 May 2016, 09:55
Roberto Jacobs
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GBP/USD Clings to Gains Near 1.4500

After bottoming out in the area of 1.4490, GBP/USD has now recovered some pips and trades above the 1.4500 mark ahead of UK data.

GBP/USD now looks to PMI

Spot has faded the initial spike to daily tops near 1.4530 although buyers seem to have turned up around 1.4490 ahead of the relevant Services PMI in the UK economy.

Consensus amongst traders sees the PMI easing a tad during April, adding to earlier prints from the manufacturing and construction sectors and showing a potential deceleration of the economy.

After posting fresh 4-month highs around 1.4770 on Tuesday, the pair has given away more than 2 cents in response to a pick up in the demand for the greenback.

Across the pond, the weekly report on the US labour market and the speech by St Louis Fed J.Bullard will also be in the limelight.

GBP/USD levels to consider

As of writing the pair is up 0.01% at 1.4497 and a break above 1.4770 (high May 3) would open the door to 1.4815 (2016 high Jan.4) and finally 1.4854 (200-day sma). On the flip side, the next support lines up at 1.4398 (20-day sma) ahead of 1.4298 (low Apr.21) and finally 1.4271 (55-day sma).


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