GBP/USD capped below 1.5600 on UK PMI

FXStreet (Mumbai) - The British pound remained lifted versus the American dollar in the European session, with GBP/USD keeping range in the upper band of the 1.55 handle, as the GBP bulls remained unaffected by deteriorating UK’s services sector activity as reflected by services PMI report.

GBP/USD unmoved by UK data

The GBP/USD pair trades 0.14% higher at 1.5584, failing yet another attempt to sustain above 1.5600 levels. The GBP/USD pair is seen wavering below 1.56 barrier, as the pound was unperturbed by the latest below estimates reading of UK services PMI.

The Markit/CIPS headline PMI measure for the UK's services sector dipped to 57.4 in July, pulling back slightly from last month's 58.5, and below expectations of 58.

The latest services report from the UK comes after Tuesday’s weaker construction sector data which raises concerns over BOE’s stance for a potential rate-hike by this year end.

The pound stands resilient to the strengthening US dollar with the DXY, a virtual gauge of the greenback’s relative strength trading 0.17% higher at 98.21. Markets now await a string of key US data release for fresh incentives on the pair.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5636 (Aug 4 High) above which gains could be extended to 1.5679 (July 31 High) levels. On the flip side, support is seen at 1.5527 (Today’s Low) below which it could extend losses to 1.5498 (July 23 Low) levels.

UK service sector cools in July

The seasonally adjusted Markit/CIPS UK Services PMI in July printed at 57.4 compared to June’s 58.5. The number stayed above 50.00 indicating expansion for the thirty-first successive month.
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GBP/JPY back to square one

The GBP/JPY was offered above 194.00, pushing it back to 193.70 after the official data showed the UK service sector cooled in July.
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