GBP/USD sticks to modest daily gains, around 1.30 mark post-UK PMI

   “¢   UK services PMI dip to 53.9 in September, down from 54.3 previous.
   “¢   Fresh USD selling bias remained supportive of the mildly positive tone.
   “¢   UK PM May’s speech eyed for fresh Brexit update and trading impetus.

The GBP/USD pair held on to its positive tone, albeit struggled to extend the momentum further beyond the key 1.30 psychological mark post-UK data.

The pair built on overnight rebound from over three-week lows but failed to gain any follow-through traction after today’s slightly softer-than-expected UK services PMI, coming in at 53.9 for September as compared to 54.0 expected and previous month’s reading of 54.3.  

However, some renewed US Dollar selling bias, despite a goodish pickup in the US Treasury bond yields, remained supportive of the pair’s modest daily gains through the early European session on Wednesday.

Meanwhile, investors seemed reluctant to place any aggressive bets and preferred to wait for any fresh Brexit update from the UK PM Theresa May’s speech at the Conservative Party annual conference, scheduled later in the day.

This coupled with the US economic docket, featuring the release of ADP report on private sector employment and ISM non-manufacturing PMI might further contribute towards producing some meaningful, short-term trading opportunities.

Technical levels to watch

Immediate support is pegged near the 1.2980-75 region (50-day SMA), which is followed by overnight swing lows, around the 1.2940 area. On the flip side, the 1.3035-40 region is likely to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3100 handle.