GBP/USD clings to gains, nearing mid-1.3500 post-UK PMI

Haresh Menghani FXStreet

• UK services PMI beat expectations.
• A weaker tone around USD supports.

The GBP/USD pair built on its post-FOMC minutes steady up-move from the 1.35 neighborhood and is currently placed at session tops post-UK services PMI.

The pair maintained its strong bid tone near the 1.3540-45 region and was being supported by the latest UK services PMI, which bettered expectations and came in at 54.2 for December as compared to an unchanged reading of 53 expected.

Meanwhile, the market looked past Wednesday's perceived hawkish FOMC meeting minutes, with some renewed US Dollar weakness helping the pair to recover part of previous session's corrective slide triggered by downbeat UK construction PMI, and aggravated by upbeat US ISM manufacturing.

Traders now look forward to today's release of ADP report on the US private sector employment, which might influence expectations over Friday's official employment details (NFP) and provide some fresh impetus later during the early NA session.

Technical levels to watch

A follow-through up-move might continue to confront some fresh supply near the 1.3600 handle, above which the momentum is likely to get extended towards 2017 yearly tops resistance near the 1.355-60 region.

On the flip side, bears would be eyeing for a convincing break through the 1.35 handle, below which the pair is likely to accelerate the slide back towards 1.3435-30 zone en-route the 1.3400 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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