GBP/USD swings back to 1.3280 on solid UK PMI

The GBP/USD pair once again found buyers near 1.3240 region and sent the rate back towards the key resistance located near 1.3280 levels, as the bulls received fresh impetus from upbeat UK services PMI report.  

GBP/USD re-approaches 1.3300 levels

The recovery in GBP/USD regained momentum as an unexpected rebound staged by the UK’s services sector offered the much-needed respite to the pound, especially after this week’s dismal construction and manufacturing PMI reports.

Moreover, Cable also benefited from stalled USD recovery across the board, as the selling interest behind Treasury yields intensify amid reduced appetite for risk assets. Negative sentiment seen around the European equities combined with the oil-price weakness continue to weigh on risk sentiment.

However, it remains to be seen if the major manages to sustain the latest uptick ahead of the US ADP report, US ISM services PMI and Fed Chair Yellen’s speech due on the cards in the American session.

GBP/USD levels to consider             

According to Slobodan Drvenica at Windsor Brokers Ltd., “selling upticks remains favored for renewed attack at 30SMA/Fibo 50% supports, break of which would trigger bearish acceleration towards 1.3124/10 (rising 55SMA/Fibo 61.8% of 1.2773/1.3655).
Conversely, lift above daily Tenkan-sen (1.3408) would neutralize bears and shift focus higher.”