GBP/USD set to rise when the winds calm as sterling weathers stormy seas

GBP/USD has been holding onto its impressive recovery as sterling weathers several storms. ISM Services PMI is key to further gains, according to FXStreet’s Analyst Yohay Elam.

Bulls are gaining ground

"In the UK, worries about supply chains are concentrated around the petrol pump. The British army is still helping deliver gasoline to stations but the worst of the crisis could already be in the rearview mirror. If headlines of queues dwindle, sterling could shine.”

“Former UK Chief EU Negotiator David Frost reiterated the UK's position that the Northern Irish protocol agreed with the EU is unworkable. Brussels insists on following the accord to the letter. Once again, the pound's ability to rise despite the worsening clash is a sign of strength.” 

“The Prices Paid component of the ISM Services Purchasing Managers' Index (PMI) for September is set to grab attention more than the Employment component. A troubling read in the ISM Services PMI could boost the safe-haven dollar and test GBP/USD's resilience. However, sterling seems well-positioned to hold up once again.” 

“Resistance awaits at 1.3645, Monday's high point. It is followed by 1.3695, which capped GBP/USD in late October.”

“Support is at 1.3580, the daily low, followed by 1.3525, a stepping stone on the way up.”