The British Pound advances to fresh three week highs against the greenback, having reached so far 1.4461, backed by broad dollar weakness and a solid UK services PMI report for January, which showed that the sector grew beyond expected, posting 55.6 against the 55.5 previous.
Ahead of the release of the US ADP private survey and the official and Markit services PMIS, the pair maintains its positive tone, although the advance is being quite painful, given that strong selling interest opposed to fresh buying one. Technically, the 4 hours chart shows that the price is hovering around previous highs, with the technical indicators heading higher near overbought levels after a limited downward corrective move, whilst the 20 SMA advances below the current level.
Above the mentioned high, the pair is expected to rally up to 1.4500, while a major resistance comes at 1.4530, the 38.2% retracement of the latest decline and the 200 EMA in the 4 hours chart. Below 1.4420 on the other hand, the decline can extend down to 1.4350, the immediate Fibonacci support, where buying interest is expected to surge.
View the live chart of the GBP/USD
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