GBP/USD around 1.3070 on PMI
- UK services PMI came in above estimates.
- Cable briefly tested highs near 1.3080, retreating afterwards.
- GBP still under pressure following BoE’s ‘dovish hike’.
The Sterling is struggling for direction on Friday, taking GBP/USD to the 1.3060/70 band following the release of services PMI in the UK.
GBP/USD now looks to US data
Cable is looking to consolidate after yesterday’s sharp pullback to the 1.3040 area in the wake of the first rate hike by the Bank of England in more than a decade. It is worth mentioning that the BoE raised the key rate by 25 bp to 0.50% on Thursday although it kept unchanged the asset purchase facility.
GBP regained some attention today after UK’s services PMI came in at 55.6 for the month of October, beating expectations and up from 53.6 from the previous month.
Looking ahead, spot should stay under pressure in light of the critical US non-farm payrolls, expected at 312K during last month.
GBP/USD levels to consider
As of writing the pair is up 0.09% at 1.3072 facing the next hurdle at 1.3084 (100-day sma) followed by 1.3175 (10-day sma) and then 1.3187 (21-day sma). On the other hand, a breach of 1.3040 (low Nov.3) would expose 1.3027 (low Oct.6) and finally 1.317 (38.2% Fibo of the 2017 up move).