GBP/USD stays below 1.28 post US-data
The GBP/USD pair pulled away from daily lows in the NA session but failed to rise back above the 1.28 handle despite mixed macro data from the United States. At the moment, the pair is down 0.2%, at 1.2785.
Today's data revealed that the private sector growth, both in the service and the manufacturing sector, in the United States lost momentum in April as the composite PMI eased to 52.7 from 53 in March. Commenting on the data, Markit said that the latest reading pointed to the weakest rate of expansion since September 2016.
- U.S. private sector growth eases to seven-month low in April - Markit
- US: Existing-home sales took off in March to their highest pace in over 10 years
The negative impact of the dismal data on the greenback seems to have faded away as the next data in-line showed that the total existing-home sales increased 4.4%, which marked the highest pace in more than a decade.
After spiking down to 99.80, with the help of the strong home sales figures, the US Dollar Index gathered some bullish momentum and refreshed its session high while approaching the significant 100 level. As of writing, the index was up 0.2%, at 99.92.
Technical outlook
The initial hurdle for the pair aligns at 1.2800 (psychological level) ahead of 1.2875 (Apr. 18 high) and 1.2900 (psychological level). To the downside, a break below 1.2760 (daily low) could aim for 1.2700 (psychological level) and 1.2615 (Mar. 27 high).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
