GBP/USD analysis: UK data keeps underpinning Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3236

UK Markit Services PMI Index up to 55.1 in June from 54.0 in May.
Thin holiday trading prevented GBP/USD from appreciating further.

The GBP/USD pair recovered the 1.3200 level on the back of another strong macroeconomic figure coming from the UK. advancing to a fresh weekly high of 1.3249 amid broad dollar's weakness in the US afternoon. The seasonally adjusted Markit Services PMI Index posted 55.1 in June, up from 54.0 in May, following strong readings also in the manufacturing and construction indexes. According to the official report, the latest upturn in service sector output was supported by the strongest increase in new work since May 2017. The pair ended the day near its daily high at 1.3227, getting a boost from ECB's related news, although the reaction was limited due to mute activity on the US holiday. This Thursday, the only fundamental event is BOE's Governor Carney speaking in Newcastle, although it could be a non-event. Meanwhile, the 4 hours chart presents an increasing upward potential, with an intraday decline having found buying interest around its 20 SMA, which partially lost upward strength due to thin trading, as technical indicators head higher within positive territory about to challenge their weekly highs.

Support levels: 1.3220 1.3185 1.3140

Resistance levels: 1.3265 1.3300 1.3335

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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