GBPUSD: Better Than Expected UK Services PMI Boosts Pound
GBPUSD trading higher following better than expected UK PMIs
Cable is trading north making 5 days high as the rebound from previous week low below 1.26 continues, as investor sentiment improves and buyers return to the oversold pair. GBPUSD managed to break above all the critical hourly moving averages and got an extra hand in early European session by better services PMI data, which drove the pair to daily high at 1.2718. The services PMI, jumped to 51.0 in May above analyst’s expectations of 50.6 as the UK services sector activity accelerated during the previous month. The better figure doesn’t add anything to our interest rate outlook for the Pound and we still believe the BoE will keep unchanged the rates until the end of 2019.
The technical picture for the pair has improved but it needs a lot of work in order to attract extra longs, first the pair needs to stabilize above the 100 MA on the 4-hour chart at 1.2718 and then can make an attempt to regain the 1.28 round figure. On the downside immediate support can be met at 1.2673 the 50 hour moving average while extra bids will emerge at the 1.2646 the 100 hour moving average.