GBP/USD Forecast: move beyond 1.41 handle likely to be capped, UK PMI/US data eyed
|The GBP/USD pair posted small gains on Tuesday and was being supported by better-than-expected UK manufacturing PMI, coming in at 55.1 for March as against the estimate of 54.7 points. Resurgent US Dollar demand though capped the up-move below the 1.4100 handle but did little to prompt any aggressive session.
The pair continued gaining some positive traction for the fourth consecutive session on Wednesday as traders now look forward to the release of UK construction PMI for some fresh impetus. This along with the US releases - ADP report on private sector employment and ISM non-manufacturing PMI, could further collaborate towards infusing some volatility later during the early NA session.
Technically, the ongoing recovery move from the 1.40 neighborhood could be seen as corrective in nature and hence, any subsequent up-move beyond the 1.4100 handle is likely to be capped at a short-term ascending trend-channel resistance break-point, now turned support, currently near the 1.4140 region.
On the flip side, the 1.4020 area now seems to protect the immediate downside and is followed by 50-day SMA support near the 1.3990 region. Weakness below the mentioned support would reaffirm the recent bearish break and turn the pair vulnerable to extend the downfall further towards testing the 1.3900 round figure mark.
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