GBP/USD in a tight range around 1.2880, PMI on sight

The Sterling is posting marginal gains on Thursday, now taking GBP/USD to the 1.2880 region ahead of UK’s Services PMI.

GBP/USD attention to PMI, data

The pair is looking to consolidate yesterday’s drop to the 1.2860 area following a strong pick up in the demand for the greenback and renewed jitters on a potential ‘hard Brexit’ scenario, particularly after EU officials wanted to ban PM Theresa May from negotiating Brexit terms.

On another direction, the FOMC meeting left rates unchanged as expected, although it sounded optimistic regarding the US labour markets and fundamentals in general, leaving the door open for a rate hike at the June meeting.

Data wise in the UK, the always-relevant Services PMI is due later (54.5 exp.) along with BoE’s Net Lending to Individuals, M4 Money Supply, Consumer Credit and Mortgage Approvals.

Across the pond, Initial Claims, Trade Balance figures and Factory Orders for the month of March are also expected.

GBP/USD levels to consider

As of writing the pair is up 0.10% at 1.2881 and a breakout of 1.2953 (high May 3) would aim for 1.2970 (2017 high Apr.28) and finally 1.3000 (psychological level). On the other hand, the immediate support aligns at 1.2861 (low May 3) followed by 1.2758 (low Apr.21) and finally 1.2728 (20-day sma).