GBP/USD: Will the recovery sustain ahead of UK services PMI?

The GBP/USD pair moved-off lows and regained bids in Asia, as markets remain expectant of a better UK services PMI report due to be released in the European session, after the manufacturing and construction PMIs disappointment. The UK construction sector activity arrived at 52.2 versus 52.4 expectations and 52.5 last.

The spot peeks into positive territory and flirts with 1.2450 barrier amid a recovery in risk sentiment ahead of the Trump-Xi Summit, which helps underpin the risk currency GBP. Additionally, renewed weakness seen around the greenback against its main competitors also aids the recovery in cable from 1.2430 lows.

Markets appears to shrug off another North Korean missiles launch news, as attention shifts towards the UK fundamentals. The UK services PMI is expected to rise to 53.5 in March from 53.3 seen previously.

Besides, the US ADP jobs, ISM services PMI and FOMC minutes will also hog the limelight in the day ahead. BOE MPC member Vlieghe’s speech will be also closely heard for fresh hints on the BOE’s monetary policy outlook.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet notes, “The 4 hours chart for the pair shows that the price has established well below its 20 SMA, whilst technical indicators have resumed their declines  within negative territory after an approach to their mid-lines, now standing at fresh weekly lows, and supporting another leg lower. The 200 EMA in the same chart stands at 1.2410, providing an immediate support, and the level to break to confirm further declines that can extend down to 1.2330. Support levels: 1.2410 1.2370 1.2330 Resistance levels: 1.2450 1.2490 1.2540.”