The GBP/USD pair managed to recover majority of its early losses to sub-1.2900 level and is now trading with only marginal losses, around 1.2925-30 band, after UK PMI print.
Spot held within previous session’s trading range and lacked any firm direction amid lackluster trading action on Wednesday. Even the better-than-expected release of UK construction PMI failed to assist the pair to build on to recent gains.
The UK construction PMI for April came-in at 53.1 as compared to 52.2 recorded in March and 52.0 expected. Against the backdrop of Tuesday’s surprisingly stronger UK manufacturing PMI, a positive surprise failed to trigger a fresh leg of bullish move for the British Pound as market participants held back ahead of the much awaited FOMC decision, due to be announced later during the NY session.
Ahead of the Fed announcement, the US economic docket that includes – ADP report and ISM non-manufacturing PMI, would be looked upon for short-term trading impetus.
Technical levels to watch
Bulls would be eyeing for a sustained move beyond mid-1.2900s, above which the pair seems all set to extend the ongoing appreciating move and head towards reclaiming the key 1.30 psychological mark.
Alternatively, weakness below session lows support near 1.2885 level, leading to a subsequent break below 1.2865-60 area (yesterday’s low) is likely to accelerate the slide towards 1.2835 level ahead of the 1.2800 handle.