GBP/USD Slips Back Below 1.4500 as UK PMI Weighs
The recovery in the GBP/USD pair faltered near 1.4520 region, allowing the bears to regain control and drive the prices back below 1.45 handle.
GBP/USD remains capped below hourly 50-SMA at 1.4533
The GBP/USD pair trades modestly flat at 1.4483, having faced stiff upside barrier near 1.4520. The cable shaved-off gains and now trades muted as investors digest the recent series of weaker PMI readings released this week, with latest being the services PMI index, against the backdrop of the Brexit vote scheduled next month.
The Markit/CIPS services PMI index for the British economy decelerated further, scoring 52.0 in April, down from 53.7 measured in March, and below estimate of 53.5.
However, a major downfall was avoided post-services PMI release as the persistent risk-on rally in equities backed by rebounding oil prices provided some support to the GBP/USD pair. Looking ahead, the US macro data will be closely watched for further momentum on the spot.
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).