GBP/USD on back-foot, but holding in positive territory on daily sticks
- GBP/USD in neutral territory.
- GBP/USD bulls need to hold 1.3737.
With the dollar in the back foot, as we progress through NY, GBP/USD has made fresh recovery highs and is now currently, GBP/USD is trading at 1.4026, down -0.67% on the day, having posted a daily high at 1.4152 and low at 1.3987.
GBP/USD has been on the backfoot all day after the UK's Jan service PMI miss at 09.30GMT that came in at 53.0 vs 54.0 forecast. From the US calendar, the US ISM non-manufacturing index rose from a reading of 56.0 in December to 59.9 in January, with analysts at ING suggesting that the bad weather at the beginning of the month has failed to dent the US economy’s momentum.
A busy week ahead
It is going to be a busy week for the UK, with the British and EU negotiators meeting in London and Brussels this week. "PM May’s ongoing battle to corral the Conservative party behind her Brexit policies are adding to GBP headwinds, we think, with her premiership increasingly looking as if it is on borrowed time," argued analysts at Scotiabank. We also have the BoE meeting, trade, IP and construction output data.
GBP/USD levels
GBP/USD has sunk back into bearish territory and trades below the 1.4148 level as the accelerated one-month uptrend line. Bears can now be pushing for a test of the mid-January high at 1.3942 on a sell-off with fades below the 10-D SMA at 1.4020/35 area. However, the price on the daily sticks remains in positive medium-term price ranges above 1.3737 11th Jan highs.