- Downtrend stalled: GBP/USD daily chart shows a bullish divergence of the relative strength index (RSI).
- An above-forecast UK services PMI could put a strong bid under the GBP.
- However, only a break above 30-day moving average (MA) would confirm a short-term bull reversal.
The GBP/USD pair has likely found a bottom at 1.3049, the bullish divergence of the 14-day RSI indicates and could cross the stiff resistance of 30-day MA if the UK services PMI prints above estimates.
Currently, the currency pair is trading at 1.32, having clocked a five-day high of 1.3216.
Focus on UK services PMI
The UK services PMI, scheduled for release at 08:30 GMT, is expected to show the pace of expansion in the service sector steadied at 54.00 index points in June. An above-forecast UK services PMI could lift the GBP/USD.
However, only a daily close above the 30-day MA of 1.3275 would confirm a short-term bearish-to-bullish trend change as the moving average had repeatedly capped the pair’s ascent in the six days to June 14.
Meanwhile, a below-forecast services PMI print could derail the corrective rally from 1.3049 (June 28 low).
GBP/USD Technical Levels
Resistance: 1.3275 (30-day MA), 1.3315 (June 22 high), 1.3472 (June 7 high).
Support: 1.3188 (session low), 1.3102 (June 21 low), 1.3049 (June 28 low).
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