GBP/USD tests 50% Fibo support

Cable managed to cut through bids around 1.42 and fell to 1.4175 (50% of 1.3835-1.4515) levels as traders continue to ignore slight improvement in the UK services PMI report.

Eyes US data

The spot now looks at the US ISM non-manufacturing index, which is likely to show service sector output ticked higher in March. Traders would also take a note of employment sub index under ISM figure.

Meanwhile, overall market sentiment and USD/JPY pair would also influence the pair. Moreover, sharp drop in the GBP/JPY cross kept GBP/USD under pressure in early US session and a similar action cannot be ruled out in the US session.

GBP/USD Technical Levels

The immediate support at 1.4175 (50% of 1.3835-1.4515) under which prices could test 1.4154 (38.2% of 1.4669-1.3835). A break lower would expose 1.41 handle. On the other hand, a break above 1.42 would expose 1.4275 (50-DMA), above which prices could test 1.4330 (23.6% of 1.5930-1.3835).