The GBP/USD pair is trading above on a positive note ahead of the UK services PMI on account of the selling in the EUR/GBP cross.
Services PMI could spike
As per past patterns, a sharp rise in the manufacturing PMI is followed by an uptick in the services PMI figure. The manufacturing PMI released on Monday beat expectations by a wide margin and printed at 16-month high. Thus, it will not be a surprise if the service activity expands at a much faster rate than the expected rise to 54.5 in October from September’s 53.3.
Apart from the headline figure, the markets would also look out for an uptick in the service sector employment and service charges (output price inflation). An uptick in both could push Sterling higher.
GBP/USD Technical Levels
At 1.5427, the immediate resistance is seen at 1.5463 (50% of 1.5819-1.5107) and the support is seen at 1.5379 (38.2% of 1.5819-1.5107). A higher than expected services PMI could trigger a break above 1.5463 and push the pair higher to its major resistance at 1.55. Further gains could be seen only in case of a big jump in services PMI. On the other hand, the pair could fall below 1.5379 and extend the drop to 1.5355 in case the PMI prints below the consensus estimate.