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GBP/USD: Recovery post-UK PMI capped below 1.5215

FXStreet (Mumbai) - The GBP/USD pair continues its struggle to extend beyond 1.52 barrier, with the every attempt to the upside in last hours meeting fresh supply near 1.5215 region.

Faces stiff hurdle at 1.5215

The GBP/USD pair 0.10% higher at 1.5200, recovering from a dip to session lows struck at 1.5173 on the UK services data. The major is currently gathering momentum to break beyond 1.5215 - the immediate resistance, while the GBP bulls continue to remain pressured following the release of worse than expected UK services PMI report.

Markit/CIPS services PMI dropped further to 53.3 in September, down from the previous month's 55.6, and far below market consensus of 56, coming in at the lowest levels since April 2013.

However, higher oil prices and soaring UK stocks led by Glencore continue to provide the much-needed helping hand to the GBP/USD pair. The UK’s FTSE rallies nearly 2.15% to 6,262 points, with a 8% rise in Glencore shares boosting the index.

Looking ahead, markets now await a slew of US macro releases due later in the New York session for further incentives on the cable.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5244 (Today’s High) above which gains could be extended to 1.5289 (Sept 24 High) levels. On the flip side, support is seen at 1.5173 (Today’s Low) below which it could extend losses to 1.5123 (Oct 2 Low) levels.

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