GBP/USD once again rejected near 1.41 handle, UK PMI eyed

Haresh Menghani FXStreet

• Bulls continue struggling to break through 1.41 handle.
• A modest USD rebound prompts some selling at higher levels.
• Traders now look forward to the UK services PMI for fresh impetus.

The GBP/USD pair once again met with some fresh supply near the 1.4100 handle and retreated around 50-pips from session tops.

Bulls struggled to maintain their dominant position, with a modest US Dollar rebound, amid easing US-China trade tensions, prompting some fresh selling near the 1.4100 supply zone.

The pair fall to an intraday low level of 1.4046 lacked any obvious catalyst and now seems to have abated as traders now look forward to a more relevant UK services PMI for some fresh impetus.

A stronger than expected reading could provide the required boost to assist the pair decisively breakthrough the 1.41 handle, while a weaker reading is likely to exert some additional downward pressure.

• When is the UK services PMI and how could it affect GBP/USD?

The UK data is unlikely to be a key determinant of the pair's near-term trajectory as investors might refrain from placing aggressive bets ahead of Friday's keenly watched US monthly jobs report (NFP).

Technical levels to watch

Any meaningful downfall might continue to find some buying interest near the 1.4015-10 region and is followed by 50-day SMA support near the 1.3990 region.

On the upside, the 1.4090-1.4100 area might continue to act as an immediate strong resistance, which if cleared might trigger a short-covering bounce towards 1.4140-50 resistance.

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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