27 Apr 2015
GBP/USD recovers on a weaker-than-expected US services PMI
FXStreet (Mumbai) - The GBP/USD witnessed a sharp recovery after the gauge of service activity in the US showed rate of growth slowed down from the seven month-high seen in the previous month.
GBP/USD rises to 1.5165
The pair jumped to 1.5172 from 1.5120 after the preliminary Markit services PMI in April came-in at 57.8, missing the estimate of 59.00. The PMI in February stands at 59.2. The pair had dipped to a low of 1.5122 earlier today as the British Pound was sold in anticipation of weak GDP data due for release tomorrow. The election uncertainty in the UK also weighed over the Pound.
It remains to be seen if the pair manages to sustain the recovery, since the weak UK retail sales growth is expected to drag down the Q1 GDP growth rate.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5188, above which gains could be extended to 1.5265 (Feb. 9th high). On the flip side, a break below 1.5122 (5-DMA), under which losses could be extended to 1.5058.
GBP/USD rises to 1.5165
The pair jumped to 1.5172 from 1.5120 after the preliminary Markit services PMI in April came-in at 57.8, missing the estimate of 59.00. The PMI in February stands at 59.2. The pair had dipped to a low of 1.5122 earlier today as the British Pound was sold in anticipation of weak GDP data due for release tomorrow. The election uncertainty in the UK also weighed over the Pound.
It remains to be seen if the pair manages to sustain the recovery, since the weak UK retail sales growth is expected to drag down the Q1 GDP growth rate.
GBP/USD Technical Levels
The immediate resistance is seen at 1.5188, above which gains could be extended to 1.5265 (Feb. 9th high). On the flip side, a break below 1.5122 (5-DMA), under which losses could be extended to 1.5058.