UK Services PMI for March missed expectations, falling to 51.7 and marking the weakest rise for 20-months amid disruptions due to snow and bad weather. The Purchasing Managers’ Index (PMI) is a measure of the economic health of the manufacturing sector.
After four days of gains, Cable (GBP/USD) slipped modestly in reaction to the news. Price was able to hold above a well defined trend line, pictured in the daily chart above.
In March the Bank of England (BOE) held rates at their current 0.5% level. At the meeting the BOE also signaled that it could hike rates in May.
Traders are looking for cues from tomorrow’s all important US employment report. Analysts expect that the US unemployment rate fell to 4.0% in March and that 190K new jobs were created.
Cable remains in a long term uptrend that began in January of 2017. The double top at 1.4245 stands out as potential resistance to the upside, followed by 1.4276.