GBP/USD – Weak recovery ahead of UK services PMI
|GBP/USD pair is having a hard time taking back losses as fears of ‘hard Brexit’ and spike in EUR/GBP overshadows positive UK economic data.
Eyes UK services PMI data
The single most important release today is the UK services PMI data which is expected to show the pace of expansion in the service sector slowed slightly in August. However, investors should note that fears of hard Brexit have overshadowed strong manufacturing and construction PMI releases earlier this week.
Meanwhile, talk of QE taper and the resulting action in the EUR/GBP cross could also influence the GBP/USD pair. Later in the day, the US ISM non-manufacturing figure could influence the pair as well.
GBP/USD Technical Levels
The spot was last seen trading around 1.2735 levels compared to previous day’s low of 1.2718. A breach of support at 1.27 (zero figure) could yield a test of 1.2590 (127.2% Fib expansion of July 2014 high – Apr 2015 low – June 2015 high). On the higher side, a break above 1.2789 (July 2016 low) would shift risk in favor of a re-test of 1.2813 (hourly 50-MA) and 1.2847 (5-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.