- Cable is now fading the earlier spike to the 1.4090 region.
- The demand for USD rebounds and push DXY beyond 90.00.
- UK’s manufacturing PMI surprised to the upside at 55.1 in March.
After briefly testing tops in the 1.4085/90 band, GBP/USD has quickly reversed the bull run in response to a sudden bout of buying interest around the greenback.
GBP/USD sidelined above 1.40
Cable continues to trade within a narrow range and following the broader mood in the rest of the global markets and always amidst the absence of strong catalysts to drive the price action.
The Sterling initially advanced to levels just below 1.4100 the figure, or session tops, after UK’s manufacturing PMI came in above expectations at 55.1 for the month of March.
Without fresh Brexit headlines to drive the sentiment around the British Pound in the very near term, the pair should look to USD-dynamics and upcoming UK’s Construction PMI (Wednesday) and the more relevant Services PMI (Thursday).
GBP/USD levels to consider
As of writing, the pair is losing 0.05% at 1.4148 facing the next hurdle at 1.4095 (10-day sma) seconded by 1.4246 (high Mar.26) and finally 1.4280 (high Feb.2). On the flip side, a break below 1.4009 (low Mar.3) would aim for 1.4006 (21-day sma) and then 1.3886 (low Mar.16).