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  • Cable manages to hold above the psychological support at the 1.3600 zone.
  • US economic data came in better-than-expected, DXY sideways above 91.00.

The GBP/USD is hovering around 1.3650, modestly lower for the day. The US dollar is showing no clear direction during the America session, unable to benefit from better-than-expected US economic data.

Data above expectations, BoE next

In the US, the ADP report showed a surprisingly high level of increase in private jobs during January. Service sector data also came in above expectations, with the ISM rising unexpectedly to the strongest level in two years. The numbers point to a positive surprise in Friday’s official employment report.

The DXY is trading at 91.10, flat for the day and near the monthly high. The numbers did not boost the greenback, although US yields moved to the upside. In Wall Street, the Dow Jones is falling by 0.12% and the Nasdaq gains 0.15%.

Also, in the UK, service sector data surpasses expectations. Attention now turns to the Bank of England will announce on Thursday its decision on monetary policy. It will be the first post-Brexit meeting. No change is expected. The mentions of negative interest rates will likely have an impact. In 2021, expectations about rate cut from the BoE eased, supporting the pound in the market.

From a technical perspective, GBP/USD is moving without a clear direction, still showing a negative bias in the very short-term. A break under 1.3600 would trigger more losses. A recovery above 1.3700 would negate the bearish bias.

Technical levels