GBP/USD bullish

Since the beginning of the week the GBP/USD pair performed excellent and is showing signs that the rally might be extended. During today’s session the pair pinned new fresh high at 1.2495, which is the highest level since 7th of October. 

Of course today a good pack of fundamental news was served and supported the Pound. The UK Markit services PMI for October showed very good numbers and BoE, as it was expected, announced that will keep its monetary policy unchanged.

RSI is indicating an extreme overbought market, but continues to support the bulls and another trigger seems to be the crossing the 50-day and 100-day moving averages. Stochastic is also showing overbought conditions and is slightly loosing strength.

The pair is facing strong resistance at 1.2480,second one is placed at 1.2775. Support is seen at 1.2230 and lower at 1.2090. 

Sterling hovers around $1.45 after set of weak PMIs

Business activity in the services sector in the UK has deteriorated in April, posting uninspired start of the second quarter with hitting lowest levels since February 2013.

UK services PMI for April, according to latest Markit release, shows that the British economy is further slowing down, noting a drop to 52.3 points in April, down from 53.7 points in March amid the expected 53.5 points.

A weaker PMI underlines the additional weakness in economic growth, that indicates it will slow down in the short term.

So finally, within this week the three PMIs (construction, manufacturing and services) fell short of the expectations and thereby GBP is under selling pressure.

GBP/USD is currently trading around 1.45, as daily low was hit at 1.4444. If the pair continue to the downside, the pair most likely will break through the support located at 1.4360. On the upside a key resistance is located at 1.4670.