GBP/USD holding steady above 1.2850 ahead of UK PMI

Brexit continues to go nowhere fast, but Carney set to steer the BoE to the end of his full tenure.
Markit PMI data for today could give Sterling bulls something to trade about.

Joshua Gibson FXStreet

The Sterling is back into 1.2860 after a dip-and-bounce on Tuesday that saw the pair take a knee into 1.2810, but bullish pressure for the Sterling on the back of the Bank of England's (BoE) Carney maintaining the helm at the UK's central bank coupled nicely with a bearish step-down in the USD, helping to lift the major pair off of the floor and mark in a potential support zone.

The BoE's Governor Mark Carney is set to maintain his tenure as the head of England's central bank in a bid by the UK's ruling regime to introduce a measure of good faith in markets as the ongoing and little-changed Brexit process still has little in the way of progress between the UK and the EU as Brexit day approaches in Q1 2019.

It's Markit Services PMI day across the European continent, and the UK's latest round of services indicator is due at 08:30 GMT, and markets are looking for a mild uptick in the reading, with median forecasts set at 53.9 versus the previous month's printing of 53.5.

GBP/USD Levels to watch

Despite a newfound interest by Pound bulls to find a way to keep the GBP/USD elevated, market pressures remain pinned firmly to the downside according to FXStreet's own Valeria Bednarik: "Meanwhile, the short-term picture for the pair is still bearish, as, in the 4 hours chart, the price remains well below a bearish 20 SMA, which crossed below the 200 EMA, while technical indicators recovered from extreme oversold readings, but remain nearby."

Support levels: 1.2845 1.2800 1.2770

Resistance levels: 1.2890 1.2920 1.2955

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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