GBP/USD bulls looking to extend the momentum beyond 1.1700 mark
- UK's stricter lockdown measures assisted GBP/USD to gain some traction on Tuesday.
- Mixed UK Manufacturing and Services PMIs did little to provide any meaningful impetus.
- Some aggressive USD selling remained supportive of the strong intraday positive move.
The GBP/USD pair climbed to fresh session tops, with bulls now looking to build on the momentum beyond the 1.1700 mark despite mixed UK PMI prints.
The sterling regained some positive traction on Tuesday and was being supported by the UK Prime Minister Boris Johnson's stricter lockdown measures to combat the COVID-19 pandemic.
The bid tone surrounding the British pound remained unabated following the disappointing release of the UK Services PMI, which was largely negated by slightly better Manufacturing PMI print.
The flash version of the UK Services PMI dropped to 35.7 in March, showing a sharp contraction in the business activity, while the UK Manufacturing PMI edged lower to 48 vs. 45 expected.
Meanwhile, some notable US dollar weakness, amid easing concerns over tightening liquidity, remained supportive of the pair's bid tone through the early European session on Tuesday.
It is worth recalling that the Fed on Monday announced to buy unlimited amounts of Treasury bonds and mortgage-backed securities to support the economy struggling from the coronavirus pandemic.
It will now be interesting to see if the pair is able to capitalize on the momentum or once again meets with some fresh supply at higher levels as the focus now shifts to the release of the US PMI prints.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
